Lommerud, Kjell Erik; Meland, Frode; Straume, Odd Rune - CESifo - 2005
. Such outsourcing leads to increased wages for the remaining in-house production. We find that stronger unions, which imply … higher domestic wages, reduce incentives for international outsourcing. Though somewhat surprising, this result provides a … theoretical reconciliation of the empirically observed trends of deunionization and increased international outsourcing in many …