Lommerud, Kjell Erik; Meland, Frode; Straume, Odd Rune - Abteilung "Marktprozesse und Steuerung", … - 2006
We analyze unionized firms’ incentives to outsource intermediate goods production to foreign (low-cost) subcontractors. 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...