How Bad is Globalization for Labour Standards in the North?
We analyse a world consisting of "the North" and "the South" where labour standards in the North are set by trade unions. Standards set by unions tend to increase output and welfare. There are no unions in the South and work standards are suboptimal. Trade between these two countries can imply a reduction in work standards in the North. Moreover, when trade unions are established in the South, the North, including northern unions, tend to lose. Quantitatively, these effects are small and overcompensated by gains in the South. The existing empirical literature tends to support our findings.
|Date of creation:||30 Aug 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10473945
Web page: http://www.uclouvain.be/ires
More information through EDIRC
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.:
- Marta Aloi & Manuel Leite-Monteiro & Teresa Lloyd-Braga, .
"Unionized Labor Markets and Globalized Capital Markets,"
08/10, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
- Aloi, Marta & Leite-Monteiro, Manuel & Lloyd-Braga, Teresa, 2009. "Unionized labor markets and globalized capital markets," Journal of International Economics, Elsevier, vol. 78(1), pages 149-153, June.
- Hervé Boulhol, 2006.
"Do capital market and trade liberalization trigger labor market deregulation ?,"
Cahiers de la Maison des Sciences Economiques
bla06062, Université Panthéon-Sorbonne (Paris 1).
- Boulhol, Herv, 2009. "Do capital market and trade liberalization trigger labor market deregulation?," Journal of International Economics, Elsevier, vol. 77(2), pages 223-233, April.
- Mezzetti, C. & Dinopoulos, E., 1989.
"Domestic Unionization And Import Competition,"
337, California Davis - Institute of Governmental Affairs.
- Brown, D.K. & Dearorff, A.V. & Stern, R.M., 1993. "International Labor Standards and Trade: A Theoretical Analysis," Working Papers 333, Research Seminar in International Economics, University of Michigan.
- Chau, Nancy H. & Kanbur, Ravi, 2000.
"The Race to the Bottom, From the Bottom,"
127681, Cornell University, Department of Applied Economics and Management.
- Booth, Alison L & Chatterji, Monojit, 1998. "Unions and Efficient Training," Economic Journal, Royal Economic Society, vol. 108(447), pages 328-43, March.
- Levine, David I. & Rothman, Dov, 2006. "Does trade affect child health?," Journal of Health Economics, Elsevier, vol. 25(3), pages 538-554, May.
- Neumayer, Eric & de Soysa, Indra, 2005.
"Trade Openness, Foreign Direct Investment and Child Labor,"
Elsevier, vol. 33(1), pages 43-63, January.
- Eric Neumayer & Indra de Soysa, 2003. "Trade Openness, Foreign Direct Investment and Child Labor," International Trade 0312001, EconWPA, revised 16 Mar 2004.
- Donado, Alejandro & Wälde, Klaus, 2009.
"Trade unions go global!,"
IAB Discussion Paper
200903, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Mihir A. Desai & C. Fritz Foley & James R. Hines Jr., 2005.
"Foreign Direct Investment and the Domestic Capital Stock,"
American Economic Review,
American Economic Association, vol. 95(2), pages 33-38, May.
- Mihir C. Desai & C. Fritz Foley & James R. Hines Jr., 2005. "Foreign Direct Investment and the Domestic Capital Stock," NBER Working Papers 11075, National Bureau of Economic Research, Inc.
- Eric V. Edmonds, 2007.
NBER Working Papers
12926, National Bureau of Economic Research, Inc.
- Kimberly Ann Elliott & Richard B. Freeman, 2003. "Can Labor Standards Improve under Globalization?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 338, January.
- Ronald B. Davies & Annie Voy, 2007.
"The Effect of FDI on Child Labor,"
The Institute for International Integration Studies Discussion Paper Series
- Ronald B. Davies & Annie Voy, 2006. "The Effect of FDI on Child Labor," University of Oregon Economics Department Working Papers 2007-4, University of Oregon Economics Department, revised 01 Feb 2007.
- Boeri, Tito & Burda, Michael C., 2008.
"Preferences for Collective versus Individualised Wage Setting,"
IZA Discussion Papers
3365, Institute for the Study of Labor (IZA).
- Tito Boeri & Michael C. Burda, 2009. "Preferences for Collective Versus Individualised Wage Setting," Economic Journal, Royal Economic Society, vol. 119(540), pages 1440-1463, October.
- Tito Boeri & Michael C. Burda, 2008. "Preferences for Collective versus Individualised Wage Setting," SFB 649 Discussion Papers SFB649DP2008-021, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Drusilla K. Brown, 2000.
"International Trade and Core Labour Standards: A Survey of the Recent Literature,"
OECD Labour Market and Social Policy Occasional Papers
43, OECD Publishing.
- Drusilla K. Brown, 2000. "International Trade and Core Labor Standards: A Survey of the Recent Literature," Discussion Papers Series, Department of Economics, Tufts University 0005, Department of Economics, Tufts University.
- Eckel, Carsten & Egger, Hartmut, 2009.
"Wage bargaining and multinational firms,"
Journal of International Economics,
Elsevier, vol. 77(2), pages 206-214, April.
- Naylor, Robin, 1997.
"Union Wage Strategies and International Trade,"
The Warwick Economics Research Paper Series (TWERPS)
480, University of Warwick, Department of Economics.
- Brander, James A. & Spencer, Barbara J., 1988. "Unionized oligopoly and international trade policy," Journal of International Economics, Elsevier, vol. 24(3-4), pages 217-234, May.
- Marcella Alsan & David E. Bloom & David Canning, 2004. "The Effect of Population Health on Foreign Direct Investment," NBER Working Papers 10596, National Bureau of Economic Research, Inc.
- Nirvikar Singh, 2004. "The Impact of International Labor Standards: A Survey of Economic Theory," International Trade 0412007, EconWPA.
When requesting a correction, please mention this item's handle: RePEc:ctl:louvir:2010028. 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: (Anne DAVISTER-LOGIST)
If references are entirely missing, you can add them using this form.