How Bad is Globalization for Labour Standards in the North?
AbstractWe analyse a world consisting of 'the North'and 'the South' where labour stan- dards 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 stan- dards 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 Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz in its series Working Papers with number 1011.
Length: 29 pages
Date of creation: 19 Aug 2010
Date of revision: 19 Aug 2010
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occupational health and safety; trade unions; international trade; welfare;
Other versions of this item:
- Alejandro DONADO & Klaus WALDE, 2010. "How Bad is Globalization for Labour Standards in the North?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2010028, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- 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.
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
- J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
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