Has International Trade Affected Workers’ Bargaining Power?
In this paper, we investigate whether international trade has affected workers?wages and their bargaining power in particular in the Belgian manufacturing industry over the period 1987-1995 by relying on a rent-sharing framework. Using a sample of more than 12 000 firms, we find that international trade has an effect on workers?wages through changes in the firms?profits. Our regression results reveal that increased foreign competition in the form of lower export prices reduces both wages per worker and profits per worker. Besides, our findings indicate that technological change is an important determinant of the workers?(relative) bargaining power. Globalisation seems also to play some role.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 142 (2006)
Issue (Month): 2 (July)
|Contact details of provider:|| Postal: |
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://link.springer.de/link/service/journals/10290/index.htm
More information through EDIRC
|Order Information:||Web: http://link.springer.de/orders.htm|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Keith E. Maskus, 1991. "Comparing International Trade Data and Product and National Characteristics Data for the Analysis of Trade Models," NBER Chapters, in: International Economic Transactions: Issues in Measurement and Empirical Research, pages 17-60 National Bureau of Economic Research, Inc.
- Robert E. Baldwin, 2003. "Decline of US Labor Unions and the Role of Trade, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 352.
- Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
- Bughin, J, 1993. "Union-Firm Efficient Bargaining and Test of Oligopolistic Conduct," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 563-67, August.
- Francis Kramarz, 2003.
"Wages and International Trade,"
2003-27, Centre de Recherche en Economie et Statistique.
- G–rg, Holger & Eric Strobl, 2002.
Royal Economic Society Annual Conference 2002
89, Royal Economic Society.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005.
"Unemployment: Macroeconomic Performance and the Labour Market,"
Oxford University Press, number 9780199279173.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345.
- David G. Blanchflower & Andrew J. Oswald & Peter Sanfey, 1992.
"Wages, Profits and Rent-Sharing,"
NBER Working Papers
4222, National Bureau of Economic Research, Inc.
- Jonathan E. Haskel & Matthew J. Slaughter, 2003.
"Have Falling Tariffs and Transportation Costs Raised US Wage Inequality?,"
Review of International Economics,
Wiley Blackwell, vol. 11(4), pages 630-650, 09.
- Jonathan E. Haskel & Matthew J. Slaughter, 2000. "Have Falling Tariffs and Transportation Costs Raised U.S. Wage Inequality?," NBER Working Papers 7539, National Bureau of Economic Research, Inc.
- Dieter Schumacher, 1992. "A note on the human capital intensity of EC trade," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 133, pages 3-19.
- Doiron, Denise J, 1992. "Bargaining Power and Wage-Employment Contracts in a Unionized Industry," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 583-606, August.
- Acemoglu, Daron & Aghion, Philippe & Violante, Giovanni L., 2001.
"Deunionization, technical change and inequality,"
Carnegie-Rochester Conference Series on Public Policy,
Elsevier, vol. 55(1), pages 229-264, December.
- Svejnar, J., 1984.
"Bargaining power, fear of disagreement and wage settlements: theory and evidence from U.S. industry,"
CORE Discussion Papers
1984037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Svejnar, Jan, 1986. "Bargaining Power, Fear of Disagreement, and Wage Settlements: Theory and Evidence from U.S. Industry," Econometrica, Econometric Society, vol. 54(5), pages 1055-78, September.
- Oswald, Andrew, 1996. "Rent-Sharing in the Labor Market," The Warwick Economics Research Paper Series (TWERPS) 474, University of Warwick, Department of Economics.
- Patrick Waelbroeck & Karolien De Bruyne & Isabel Van Der Auwera, 2000. "Will wage policy succeed in Euro-land? The case of Belgium," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 168, pages 443-480.
- Jennifer C. Smith, 1996. "Effet du pouvoir de négociation et du marché local du travail sur la détermination des salaires," Économie et Prévision, Programme National Persée, vol. 126(5), pages 1-17.
- Malcomson, J.M., 1997.
"Contracts, hold-up and labor markets,"
Discussion Paper Series In Economics And Econometrics
9703, Economics Division, School of Social Sciences, University of Southampton.
- Greenaway, David & Hine, Robert C. & Wright, Peter, 1999. "An empirical assessment of the impact of trade on employment in the United Kingdom," European Journal of Political Economy, Elsevier, vol. 15(3), pages 485-500, September.
- Slaughter, Matthew J., 2001. "International trade and labor-demand elasticities," Journal of International Economics, Elsevier, vol. 54(1), pages 27-56, June.
- Wood, Adrian, 1995. "North-South Trade, Employment and Inequality: Changing Fortunes in a Skill-Driven World," OUP Catalogue, Oxford University Press, number 9780198290155.
- Horn, Henrik & Wolinsky, Asher, 1988. "Worker Substitutability and Patterns of Unionisation," Economic Journal, Royal Economic Society, vol. 98(391), pages 484-97, June.
- McDonald, Ian M & Suen, Anthony, 1992. "On the Measurement and Determination of Trade Union Power," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(2), pages 209-24, May.
- Orley Ashenfelter & James N. Brown, 1985.
"Testing the Efficiency of Employment Contracts,"
573, Princeton University, Department of Economics, Industrial Relations Section..
- Van Reenen, John, 1994.
"The Creation and Capture of Rents: Wages and Innovation in a Panel of UK Companies,"
CEPR Discussion Papers
1071, C.E.P.R. Discussion Papers.
- Van Reenen, John, 1996. "The Creation and Capture of Rents: Wages and Innovation in a Panel of U.K. Companies," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 195-226, February.
- Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57.
- John W. Budd & Matthew J.Slaughter, 2000. "Are Profits Shared Across Borders? Evidence on International Rent Sharing," NBER Working Papers 8014, National Bureau of Economic Research, Inc.
- Ken Binmore & Ariel Rubinstein & Asher Wolinsky, 1986. "The Nash Bargaining Solution in Economic Modelling," RAND Journal of Economics, The RAND Corporation, vol. 17(2), pages 176-188, Summer.
- Clark, Simon, 1991. "Inventory Accumulation, Wages, and Employment," Economic Journal, Royal Economic Society, vol. 101(405), pages 230-38, March.
- Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May.
- McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December.
- Dobbelaere, Sabien, 2004. "Estimation of price-cost margins and union bargaining power for Belgian manufacturing," International Journal of Industrial Organization, Elsevier, vol. 22(10), pages 1381-1398, December.
- Clark, Simon, 1993. "The Strategic Use of Inventories in an Infinite Horizon Model of Wage and Employment Bargaining," Scottish Journal of Political Economy, Scottish Economic Society, vol. 40(2), pages 165-83, May.
- Nickell, Stephen, 1999. "Product markets and labour markets1," Labour Economics, Elsevier, vol. 6(1), pages 1-20, March.
- Patrick A. Messerlin, 2001. "Measuring the Costs of Protection in Europe: European Commercial Policy in the 2000s," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 102.
- John M. Abowd & Thomas Lemieux, 1991.
"The Effects of Product Market Competition on Collective Bargaining Agreements: The Case of Foreign Competition in Canada,"
NBER Working Papers
3808, National Bureau of Economic Research, Inc.
- Abowd, John M & Lemieux, Thomas, 1993. "The Effects of Product Market Competition on Collective Bargaining Agreements: The Case of Foreign Competition in Canada," The Quarterly Journal of Economics, MIT Press, vol. 108(4), pages 983-1014, November.
- Paul Krugman, 1995. "Growing World Trade: Causes and Consequences," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 327-377.
- S. Dobbelaere, 2003. "Ownership, Firm Size and Rent Sharing in a Transition Country," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/170, Ghent University, Faculty of Economics and Business Administration.
- Luca De Benedictis & Rodolfo Helg, 2002. "Globalization," LIUC Papers in Economics 112, Cattaneo University (LIUC).
- Sutton, John, 1986. "Non-cooperative Bargaining Theory: An Introduction," Review of Economic Studies, Wiley Blackwell, vol. 53(5), pages 709-24, October.
When requesting a correction, please mention this item's handle: RePEc:spr:weltar:v:142:y:2006:i:2:p:233-266. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F Baum)
If references are entirely missing, you can add them using this form.