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Trade, Wages and Collective Bargaining: Evidence from France

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  • Juan Carluccio
  • Denis Fougère
  • Erwan Gautier

Abstract

We estimate the impact of international trade on wages using data for French manufacturing firms. We instrument firm-level trade flows with firm-specific instrumental variables based on world demand and supply shocks. Both export and offshoring shocks have a positive effect on wages. Exports increase wages for all occupational categories while offshoring has heterogeneous effects. The impact of trade on wages varies across bargaining regimes. In firms with collective bargaining, the elasticity of wages with respect to exports and offshoring is higher than in firms with no collective bargaining. Wage gains associated with collective bargaining are similar across worker categories. Keywords: exports, offshoring, firm-level wages, collective bargaining.
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  • Juan Carluccio & Denis Fougère & Erwan Gautier, 2015. "Trade, Wages and Collective Bargaining: Evidence from France," Economic Journal, Royal Economic Society, vol. 0(584), pages 803-837, May.
  • Handle: RePEc:wly:econjl:v::y:2015:i:584:p:803-837
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    File URL: http://hdl.handle.net/10.1111/ecoj.2015.125.issue-584
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    Cited by:

    1. Juan Carluccio & Alejandro Cuñat & Harald Fadinger & Christian Fons-Rosen, 2015. "Offshoring and Skill-upgrading in French Manufacturing: A Heckscher-Ohlin-Melitz View," CeFiG Working Papers 22, Center for Firms in the Global Economy, revised 29 Sep 2015.
    2. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    3. Matthias Strifler & Thomas Beissinger, 2016. "Fairness Considerations in Labor Union Wage Setting – A Theoretical Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(3), pages 303-330, July.
    4. Carluccio, Juan & Fougère, Denis & Gautier, Erwan, 2016. "The impact of trade shocks on collective wage bargaining agreements," CEPR Discussion Papers 11289, C.E.P.R. Discussion Papers.
    5. Clément Malgouyres & Thierry Mayer, 2018. "Exports and labor costs: evidence from a French policy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(3), pages 429-454, August.
    6. Luca Marcolin & Mariagrazia Squicciarini, 2018. "Investing in Innovation and Skills: Thriving through Global Value Chains," Review of Economics and Institutions, Università di Perugia, vol. 9(1).
    7. James Harrigan & Ariell Reshef & Farid Toubal, 2016. "The March of the Techies: Technology, Trade, and Job Polarization in France, 1994-2007," CESifo Working Paper Series 5942, CESifo.
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    11. Chiara Criscuolo & Alexander Hijzen & Cyrille Schwellnus & Erling Barth & Wen-Hao Chen & Richard Fabling & Priscilla Fialho & Balazs Stadler & Richard Upward & Wouter Zwysen & Katarzyna Grabska & Ryo , 2020. "Workforce composition, productivity and pay: the role of firms in wage inequality," OECD Economics Department Working Papers 1603, OECD Publishing.
    12. Giuseppe Berlingieri & Patrick Blanchenay & Chiara Criscuolo, 2017. "The Great Divergence(s)," CEP Discussion Papers dp1488, Centre for Economic Performance, LSE.
    13. Erwan Gautier & Sebastien Roux & Milena Suarez-Castillo, 2019. "Do Minimum Wages Make Wages More Rigid? Evidence from French Micro Data," Working papers 720, Banque de France.
    14. Clément Carbonnier & Simon Fredon & Benoît Gauthier & Clément Malgouyres & Thierry Mayer & Loriane Py & Gwenaële Rot & Camille Urvoy, 2016. "Evaluation interdisciplinaire des impacts du CICE en matière de compétitivité internationale, d'investissement, d'emploi, de résultat net des entreprises et de salaires," Sciences Po publications info:hdl:2441/4v8c8tnfgu8, Sciences Po.
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    18. Carluccio, J. & Fougère, D. & Gautier, E., 2016. "Trade, wages, and collective bargaining," Rue de la Banque, Banque de France, issue 16, January..
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    21. Feicheng Wang & Chris Milner & Juliane Scheffel, 2018. "Globalization and inter‐industry wage differentials in China," Review of International Economics, Wiley Blackwell, vol. 26(2), pages 404-437, May.
    22. Carluccio, Juan & Cuñat, Alejandro & Fadinger, Harald & Fons-Rosen, Christian, 2019. "Offshoring and skill-upgrading in French manufacturing," Journal of International Economics, Elsevier, vol. 118(C), pages 138-159.
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    24. Juan Carluccio & Alejandro Cuñat & Harald Fadinger & Christian Fons-Rosen, 2017. "Winners and losers from globalisation: offshoring benefits skilled workers and hurts the less skilled," Rue de la Banque, Banque de France, issue 51, november.
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    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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