Wage bargaining, job loss fears and offshoring
In this paper I present a simple theoretical model where firms and trade unions negotiate over wages. Firms have the possibility to offshore parts of the ir production and trade union members have a disutility from individual job loss fears. I show that higher job loss fears result in lower wages. As a Nash bargaining result, firms can use potential but non realized offshoring as a threat to enforce lower wages. Using a large German household survey, I can show evidence that increasing potential offshoring lowers wages through high job loss fears.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.cege.wiso.uni-goettingen.de/
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.:
- Ellen Brock & Sabien Dobbelaere, 2003.
"Has International Trade Affected Workers?Bargaining Power?,"
LICOS Discussion Papers
13603, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Ellen Brock & Sabien Dobbelaere, 2006. "Has International Trade Affected Workers’ Bargaining Power?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(2), pages 233-266, July.
- Baumgarten, Daniel & Geishecker, Ingo & Görg, Holger, 2010.
"Offshoring, tasks, and the skill-wage pattern,"
Center for European, Governance and Economic Development Research Discussion Papers
98, University of Goettingen, Department of Economics.
- Daniel Baumgarten & Ingo Geishecker & Holger Görg, 2010. "Offshoring, Tasks, and the Skill-Wage Pattern," SOEPpapers on Multidisciplinary Panel Data Research 281, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Baumgarten, Daniel & Geishecker, Ingo & Görg, Holger, 2013. "Offshoring, tasks, and the skill-wage pattern," Munich Reprints in Economics 20143, University of Munich, Department of Economics.
- Baumgarten, Daniel & Geishecker, Ingo & Görg, Holger, 2010. "Offshoring, tasks, and the skill-wage pattern," CEPR Discussion Papers 7756, C.E.P.R. Discussion Papers.
- Daniel Baumgarten & Ingo Geishecker & Holger Görg, 2010. "Offshoring, tasks, and the skill-wage pattern," Kiel Working Papers 1603, Kiel Institute for the World Economy.
- Baumgarten, Daniel & Geishecker, Ingo & Görg, Holger, 2010. "Offshoring, Tasks, and the Skill-Wage Pattern," IZA Discussion Papers 4828, Institute for the Study of Labor (IZA).
- Booth,Alison L., 1994.
"The Economics of the Trade Union,"
Cambridge University Press, number 9780521468398.
- Jacob A. Mincer, 1974. "Age and Experience Profiles of Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 64-82 National Bureau of Economic Research, Inc.
- Geishecker, Ingo & Riedl, Maximilian & Frijters, Paul, 2012. "Offshoring and job loss fears: An econometric analysis of individual perceptions," Labour Economics, Elsevier, vol. 19(5), pages 738-747.
- Bruno S. Frey & Alois Stutzer, 2002.
"What Can Economists Learn from Happiness Research?,"
Journal of Economic Literature,
American Economic Association, vol. 40(2), pages 402-435, June.
- Bruno S. Frey & Alois Stutzer, . "What can Economists Learn from Happiness Research?," IEW - Working Papers 080, Institute for Empirical Research in Economics - University of Zurich.
- Bruno S. Frey & Alois Stutzer, 2001. "What Can Economists Learn from Happiness Research?," CESifo Working Paper Series 503, CESifo Group Munich.
- Ingo Geishecker & Holger Görg, 2008.
"Winners and losers: a micro-level analysis of international outsourcing and wages,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 41(1), pages 243-270, February.
- Geishecker, Ingo & Görg, Holger, 2007. "Winners and losers: A Micro-level Analysis of International Outsourcing and Wages," CEPR Discussion Papers 6484, C.E.P.R. Discussion Papers.
- Arellano, M, 1987. "Computing Robust Standard Errors for Within-Groups Estimators," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(4), pages 431-34, November.
- Wilhelm Kohler, 2004. "International outsourcing and factor prices with multistage production," Economic Journal, Royal Economic Society, vol. 114(494), pages C166-C185, 03.
- Arndt, Sven W., 1997. "Globalization and the open economy," The North American Journal of Economics and Finance, Elsevier, vol. 8(1), pages 71-79.
- Laszlo Goerke & Markus Pannenberg, 2012. "Risk Aversion, Collective Bargaining, and Wages in Germany," LABOUR, CEIS, vol. 26(2), pages 156-173, 06.
- Axel Dreher & Noel Gaston, 2007.
"Has Globalisation Really had no Effect on Unions?,"
Wiley Blackwell, vol. 60(2), pages 165-186, 05.
- Jan Rose Skaksen, 2004. "International outsourcing when labour markets are unionized," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 78-94, February.
- Ken Binmore & Ariel Rubinstein & Asher Wolinsky, 1986. "The Nash Bargaining Solution in Economic Modelling," RAND Journal of Economics, The RAND Corporation, vol. 17(2), pages 176-188, Summer.
- Gene M. Grossman & Esteban Rossi-Hansberg, 2006.
"Trading Tasks: A Simple Theory of Offshoring,"
NBER Working Papers
12721, National Bureau of Economic Research, Inc.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, December.
- Gaston, Noel, 2002. "The Effects of Globalisation on Unions and the Nature of Collective Bargaining," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 377-396.
- John P. Haisken-DeNew & Markus H. Hahn, 2010.
"PanelWhiz - Efficient Data Extraction of Complex Panel Data Sets: An Example Using the German SOEP,"
53, DIW Berlin, German Institute for Economic Research.
- John P. Haisken-DeNew & Markus H. Hahn, 2010. "PanelWhiz: Efficient Data Extraction of Complex Panel Data Sets - An Example Using the German SOEP," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 130(4), pages 643-654.
- Michel Dumont & Glenn Rayp & Peter Willemé, 2006. "Does internationalization affect union bargaining power? An empirical study for five EU countries," Oxford Economic Papers, Oxford University Press, vol. 58(1), pages 77-102, January.
- Schmidt, Stefanie R, 1999. "Long-Run Trends in Workers' Beliefs about Their Own Job Security: Evidence from the General Social Survey," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages S127-41, October.
When requesting a correction, please mention this item's handle: RePEc:zbw:cegedp:174. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.