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A note on the effect of outsourcing on union wages

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Listed:
  • Braun, Sebastian
  • Scheffel, Juliane

Abstract

We analyze the effect of outsourcing on union wages in a simple two-stage game between a firm and a union. In contrast to public perception the ease with which the firm can outsource parts of their production does not necessarily reduce the wage set by the union. Even in the simple model framework a surprisingly large number of conflicting effects is established.

Suggested Citation

  • Braun, Sebastian & Scheffel, Juliane, 2007. "A note on the effect of outsourcing on union wages," SFB 649 Discussion Papers 2007-034, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    • Handle: RePEc:zbw:sfb649:sfb649dp2007-034
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    Keywords

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    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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