How Bad is Globalization for Labour Standards in the North?
AbstractWe analyse a world consisting of "the North" and "the South" where labour standards in the North are set by trade unions. Standards set by unions tend to increase output and welfare. There are no unions in the South and work standards are suboptimal. Trade between these two countries can imply a reduction in work standards in the North. Moreover, when trade unions are established in the South, the North, including northern unions, tend to lose. Quantitatively, these effects are small and overcompensated by gains in the South. The existing empirical literature tends to support our findings.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2010028.
Date of creation: 30 Aug 2010
Date of revision:
occupational health and safety; trade unions; international trade; welfare;
Other versions of this item:
- Donado, Alejandro & Wälde, Klaus, 2010. "How bad is globalization for labour standards in the north?," W.E.P. - WÃ¼rzburg Economic Papers 84, University of Würzburg, Chair for Monetary Policy and International Economics.
- Alejandro Donado & Klaus Wälde, 2010. "How Bad is Globalization for Labour Standards in the North?," FIW Working Paper series 059, FIW.
- Alejando Donado & Klaus Wälde, 2010. "How Bad is Globalization for Labour Standards in the North?," Working Papers 1011, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 19 Aug 2010.
- J - Labor and Demographic Economics
- J - Labor and Demographic Economics
- F - International Economics
- F - International Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-11 (All new papers)
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