"Ménage à trois" in a globalizing world: bargaining between firms, low-skilled and high-skilled workers
This paper extends the assessment of the impact of globalization on the bargaining power of employees by taking worker heterogeneity into account. In contrast with previous studies, two separate unions - representing low-skilled and high-skilled workers respectively - are considered. Using Belgian firm-level data, labour bargaining power and relative wage preference have been estimated by skill level. Subsequently regressing these estimates on a set of potential determinants, the bargaining power of low-skilled workers appears to fall with imports and offshoring, whereas the bargaining power of high-skilled workers remains unaffected. In addition, a significant effect of globalization is found on the relative preference of unions for wages over employment, indicating that the effect of globalization on the behaviour of labour unions is more encompassing than frequently assumed. A positive impact of R&D intensity on the bargaining power of low-skilled workers is the only effect related to technological change that is found to be statistically significant.
|Date of creation:||Nov 2010|
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- Filip Abraham & Jozef Konings & Stijn Vanormelingen, 2009.
"The effect of globalization on union bargaining and price-cost margins of firms,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(1), pages 13-36, April.
- Filip Abraham & Jozef Konings & Stijn Vanormelingen, 2007. "The Effect of Globalization on Union Bargaining and Price-Cost Margins of Firms," LICOS Discussion Papers 18107, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Lourdes Moreno & Diego Rodríguez, 2010.
"Markups, bargaining power and offshoring: An empirical assessment,"
10-05, Asociación Española de Economía y Finanzas Internacionales.
- Lourdes Moreno & Diego Rodríguez, 2011. "Markups, Bargaining Power and Offshoring: An Empirical Assessment-super-1," The World Economy, Wiley Blackwell, vol. 34(9), pages 1593-1627, 09.
- Moreno, L & Rodríguez, D, 2010. "Markups, bargaining power and offshoring: an empirical assessment," MPRA Paper 23587, University Library of Munich, Germany.
- Oskar Nordström Skans & Per-Anders Edin & Bertil Holmlund, 2009.
"Wage Dispersion Between and Within Plants: Sweden 1985-2000,"
in: The Structure of Wages: An International Comparison, pages 217-260
National Bureau of Economic Research, Inc.
- Nordström Skans, Oskar & Edin, Per-Anders & Holmlund, Bertil, 2006. "Wage dispersion between and within plants: Sweden 1985-2000," Working Paper Series 2006:9, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Nordström Skans, Oskar & Edin, Per-Anders & Holmlund, Bertil, 2006. "Wage Dispersion Between and Within Plants: Sweden 1985-2000," Working Paper Series 2006:18, Uppsala University, Department of Economics.
- Oskar Nordström Skans & Per-Anders Edin & Bertil Holmlund, 2007. "Wage dispersion between and within plants: Sweden 1985-2000," NBER Working Papers 13021, National Bureau of Economic Research, Inc.
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