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Why do people dislike low-wage trade competition with posted workers in the service sector?

  • Calmfors, Lars
  • Dimdins, Girts
  • Sendén, Marie Gustafsson
  • Montgomery, Henry
  • Stavlöt, Ulrika
Registered author(s):

    The issue of low-wage competition in services trade involving posted workers is controversial in the EU. Using Swedish survey data, people's attitudes are found to be more negative to such trade than to goods trade. The differences depend on both a preference for favouring social groups to which individuals belong (the domestic population) and altruistic justice concerns for foreign workers. In small-group experiments, we find a tendency for people to adjust their evaluations of various aspects of trade to their general attitude. This tendency is stronger for those opposed to than those in favour of low-wage trade competition. This may indicate that the former group forms its attitudes in a less rational way than the latter group.

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    File URL: http://www.sciencedirect.com/science/article/pii/S105353571300125X
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    Article provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).

    Volume (Year): 47 (2013)
    Issue (Month): C ()
    Pages: 82-93

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    Handle: RePEc:eee:soceco:v:47:y:2013:i:c:p:82-93
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620175

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    5. Lori G. Kletzer, 2004. "Trade-related Job Loss and Wage Insurance: a Synthetic Review," Review of International Economics, Wiley Blackwell, vol. 12(5), pages 724-748, November.
    6. Kristen Olson, 2013. "Do non-response follow-ups improve or reduce data quality?: a review of the existing literature," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 176(1), pages 129-145, 01.
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    8. Kenneth F. Scheve & Matthew J. Slaughter, 1998. "What Determines Individual Trade Policy Preferences?," NBER Working Papers 6531, National Bureau of Economic Research, Inc.
    9. M. Ruth & K. Donaghy & P. Kirshen, 2006. "Introduction," Chapters, in: Regional Climate Change and Variability, chapter 1 Edward Elgar.
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