Why Do People Dislike Low-Wage Trade Competition with Posted Workers in the Service Sector?
The issue of low-wage competition in services trade involving posted workers is controversial in the EU. Using Swedish survey data, peopleâ€™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 (here 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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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.:
- Kenneth F. Scheve & Matthew J. Slaughter, 1998. "What Determines Individual Trade Policy Preferences?," NBER Working Papers 6531, National Bureau of Economic Research, Inc.
- Breinlich, Holger & Criscuolo, Chiara, 2011.
"International trade in services: A portrait of importers and exporters,"
Journal of International Economics,
Elsevier, vol. 84(2), pages 188-206, July.
- Breinlich, Holger & Criscuolo, Chiara, 2010. "International Trade in Services: A Portrait of Importers and Exporters," CEPR Discussion Papers 7837, C.E.P.R. Discussion Papers.
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