IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper

How Bad is Globalization for Labour Standards in the North?

  • Alejando Donado

    ()

    (Department of Economics, University of Würzburg, Germany)

  • Klaus Wälde

    (Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, Germany)

We analyse a world consisting of 'the North'and 'the South' where labour stan- dards 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 stan- dards 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.

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.

File URL: http://www.macro.economics.uni-mainz.de/RePEc/pdf/Discussion_Paper_1011.pdf
File Function: First version, 2010
Download Restriction: no

Paper provided by Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz in its series Working Papers with number 1011.

as
in new window

Length: 29 pages
Date of creation: 19 Aug 2010
Date of revision: 19 Aug 2010
Handle: RePEc:jgu:wpaper:1011
Contact details of provider: Postal:
+49 6131 39-22223

Phone: +49 6131 39-22223
Web page: http://wiwi.uni-mainz.de/index.html
Email:


More information through EDIRC

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.:

as in new window
  1. 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].
  2. Neumayer, Eric & de Soysa, Indra, 2005. "Trade Openness, Foreign Direct Investment and Child Labor," World Development, Elsevier, vol. 33(1), pages 43-63, January.
  3. 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.
  4. 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.
  5. Eckel, Carsten & Egger, Hartmut, 2009. "Wage bargaining and multinational firms," Journal of International Economics, Elsevier, vol. 77(2), pages 206-214, April.
  6. Naylor, Robin, 1999. "Union Wage Strategies and International Trade," Economic Journal, Royal Economic Society, vol. 109(452), pages 102-25, January.
  7. Davies, Ronald B. & Voy, Annie, 2009. "The effect of FDI on child labor," Journal of Development Economics, Elsevier, vol. 88(1), pages 59-66, January.
  8. Nirvikar Singh, 2004. "The Impact of International Labor Standards: A Survey of Economic Theory," International Trade 0412007, EconWPA.
  9. 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.
  10. Mezzetti, C. & Dinopoulos, E., 1989. "Domestic Unionization And Import Competition," Papers 337, California Davis - Institute of Governmental Affairs.
  11. Booth, Alison L & Chatterji, Monojit, 1998. "Unions and Efficient Training," Economic Journal, Royal Economic Society, vol. 108(447), pages 328-43, March.
  12. Chau, Nancy H. & Kanbur, Ravi, 2000. "The Race to the Bottom, From the Bottom," Working Papers 127681, Cornell University, Department of Applied Economics and Management.
  13. Eric V. Edmonds, 2007. "Child Labor," NBER Working Papers 12926, National Bureau of Economic Research, Inc.
  14. 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.
  15. 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.
  16. Levine, David I. & Rothman, Dov, 2006. "Does trade affect child health?," Journal of Health Economics, Elsevier, vol. 25(3), pages 538-554, May.
  17. 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.
  18. 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.
  19. 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.
  20. 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.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:jgu:wpaper:1011. 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: (Lehrstuhl Wälde)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.