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Another look at mass migration and unions in Western Europe

  • Basu, Bharati
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    The paper analyses implications of unions' strategy for employment in western European countries that are baffled with mass migration of unskilled workers from neighboring poor countries. Unions' strategy in this paper includes bargaining for non-wage benefits together with monetary compensation for workers. It is shown that unions' strategy generates employment, raises the ratio of skilled to unskilled workers and raises national income. This suggests that even when migration acts as a competitive fringe, instead of using controversial migration policy as a covert anti-union tool, policy makers should encourage this type of bargaining which will have both economically and politically favorable effects.

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    File URL: http://www.sciencedirect.com/science/article/B6VB1-4W0R3HY-1/2/1a62af37c2c3de01521870709ec2bd5c
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    Article provided by Elsevier in its journal Economic Modelling.

    Volume (Year): 26 (2009)
    Issue (Month): 5 (September)
    Pages: 878-885

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    Handle: RePEc:eee:ecmode:v:26:y:2009:i:5:p:878-885
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/30411

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    1. Calvo, Guillermo A, 1978. "Urban Employment and Wage Determination in LDC's: Trade Unions in the Harris-Todaro Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(1), pages 65-81, February.
    2. Sato, Ryuzo & Koizumi, Tetsunori, 1973. "On the Elasticities of Substitution and Complementarity," Oxford Economic Papers, Oxford University Press, vol. 25(1), pages 44-56, March.
    3. De New, John P & Zimmermann, Klaus F, 1994. "Native Wage Impacts of Foreign Labor: A Random Effects Panel Analysis," Journal of Population Economics, Springer, vol. 7(2), pages 177-92.
    4. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
    5. Peter B. Kenen, 1965. "Nature, Capital, and Trade," Journal of Political Economy, University of Chicago Press, vol. 73, pages 437.
    6. Rivera-Batiz, Francisco L., 1982. "International migration, non-traded goods and economic welfare in the source country," Journal of Development Economics, Elsevier, vol. 11(1), pages 81-90, August.
    7. Manning, Alan, 1987. "An Integration of Trade Union Models in a Sequential Bargaining Framework," Economic Journal, Royal Economic Society, vol. 97(385), pages 121-39, March.
    8. Schmidt, Christoph M. & Stilz, Anette & Zimmermann, Klaus F., 1994. "Mass migration, unions, and government intervention," Journal of Public Economics, Elsevier, vol. 55(2), pages 185-201, October.
    9. Gang, Ira N & Rivera-Batiz, Francisco L, 1994. "Labor Market Effects of Immigration in the United States and Europe: Substitution vs. Complementarity," Journal of Population Economics, Springer, vol. 7(2), pages 157-75.
    10. John P. Haisken-DeNew & Klaus F. Zimmermann, . "Blue Collar Labor Vulnerability," Working Papers 9322, SELAPO Center for Human Resources.
    11. Brecher, Richard A. & Choudhri, Ehsan U., 1987. "International migration versus foreign investment in the presence of unemployment," Journal of International Economics, Elsevier, vol. 23(3-4), pages 329-342, November.
    12. Peter B. Kenen, 1965. "Errors in "Nature, Capital, and Trade"," Journal of Political Economy, University of Chicago Press, vol. 73, pages 658.
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