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This paper analyzes a North-South trade model with costly offshoring and equilibrium unemployment due to union wage … setting. Reductions in the amount of resources required in the offshoring process usually decrease employment, though the … opposite can happen at a low initial level of offshoring activity. If additional offshoring leads to a fall in the scale of …
Persistent link: https://www.econbiz.de/10009156370
In this paper, we provide first empirical evidence on the effect of outsourcing on union wages using linked employer … industries with high outsourcing intensities. The finding applies to both firm- and sector-level agreements. Hence, outsourcing … appears to deteriorate the bargaining position of unions. Outsourcing is not found to have a negative effect on the wages of …
Persistent link: https://www.econbiz.de/10003633877
We analyze the effect of outsourcing on union wages in a simple two-stage game between a firm and a union. In contrast …. -- Collective Bargaining ; International Outsourcing ; Union Wages …
Persistent link: https://www.econbiz.de/10003633928
This paper studies the relationship between wage negotiations and the mode of foreign market penetration in a general equilibrium framework. We analyze the incentives of firms to set up a foreign production facility for improving their bargaining position vis-à-vis local unions. This renders...
Persistent link: https://www.econbiz.de/10013317588
We derive the sub-game perfect Nash equilibria for the foreign direct investment (FDI) game played between two unionised firms. Among other results, we show that FDI is less likely, ceteris paribus, the greater is union bargaining power, the stronger the weight the union attaches to wages, and...
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-level trade flows with firm-specific instrumental variables based on world demand and supply shocks. Both export and offshoring … shocks have a positive effect on wages. Exports increase wages for all occupational categories while offshoring has … elasticity of wages with respect to exports and offshoring is higher than in firms with no collective bargaining. Wage gains …
Persistent link: https://www.econbiz.de/10010488816