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, tends to lose out. Quantitatively, these effects are small and overcompensated for by gains in the South. The existing empirical literature tends to support our findings.
|Date of creation:||Nov 2010|
|Date of revision:|
|Contact details of provider:|| |
|Order Information:|| Postal: FIW Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna|
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.:
- 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.
- Levine, David I. & Rothman, Dov, 2006. "Does trade affect child health?," Journal of Health Economics, Elsevier, vol. 25(3), pages 538-554, May.
- 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.
- Marta Aloi & Manuel Leite-Monteiro & Teresa Lloyd-Braga, . "Unionized Labor Markets and Globalized Capital Markets," Discussion Papers 08/10, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
- 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.
- 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.
- 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.
- 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.
- 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.
- Mezzetti, C. & Dinopoulos, E., 1989.
"Domestic Unionization And Import Competition,"
337, California Davis - Institute of Governmental Affairs.
- Chau, Nancy H & Kanbur, Ravi, 2001.
"The Race To the Bottom, From the Bottom,"
CEPR Discussion Papers
2687, C.E.P.R. Discussion Papers.
- Naylor, Robin, 1999.
"Union Wage Strategies and International Trade,"
Royal Economic Society, vol. 109(452), pages 102-25, January.
- Naylor, Robin, 1997. "Union Wage Strategies and International Trade," The Warwick Economics Research Paper Series (TWERPS) 480, University of Warwick, Department of Economics.
- 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.
- 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.
- 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.
- Nirvikar Singh, 2004. "The Impact of International Labor Standards: A Survey of Economic Theory," International Trade 0412007, EconWPA.
- Edmonds, Eric V., 2008.
Handbook of Development Economics,
- Booth, Alison L & Chatterji, Monojit, 1998. "Unions and Efficient Training," Economic Journal, Royal Economic Society, vol. 108(447), pages 328-43, March.
- 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.
- Eckel, Carsten & Egger, Hartmut, 2009.
"Wage bargaining and multinational firms,"
Journal of International Economics,
Elsevier, vol. 77(2), pages 206-214, April.
- 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.
- 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.
- Boeri, Tito & Burda, Michael C., 2008. "Preferences for Collective versus Individualised Wage Setting," IZA Discussion Papers 3365, Institute for the Study of Labor (IZA).
- Alejandro Donado & Klaus Wälde, 2008.
"Trade Unions Go Global!,"
CESifo Working Paper Series
2368, CESifo Group Munich.
- Alejandro Donado & Klaus Wälde, 2008. "Trade Unions go global!," Working Papers 2008_22, Business School - Economics, University of Glasgow, revised Aug 2008.
- 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].
When requesting a correction, please mention this item's handle: RePEc:wsr:wpaper:y:2010:i:059. 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: ()
If references are entirely missing, you can add them using this form.