This paper investigates the impact of market-oriented economic reforms on union behaviour in Brazil. Previous work shows that openness, deregulation and similar measures constrain union power. In contrast, our results show that insider power has increased in the more competitive environment since the implementation of the reforms in Brazil in the early 1990s. We argue that this is associated with the structure of wage bargaining, and with the low quality of the labour force. Unions take advantage of the higher demand for qualified workers in a more competitive economy by increasing wage pressure.
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Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number
9902.
Length: Date of creation: Jan 1999 Date of revision: Handle: RePEc:ukc:ukcedp:9902
Contact details of provider: Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP Phone: +44 (0)1227 764000 Fax: +44 (0)1227 827850 Web page: http://www.ukc.ac.uk/economics/
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Find related papers by JEL classification: F14 - International Economics - - Trade - - - Country and Industry Studies of Trade J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
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