This paper indicates that the extent of collective bargaining coverage in an industry may depend on the differences in firms productivity levels within the industry. Less pronounced differences in productivity levels make it easier to design collective wage contracts that are accepted by a wider...

The prevalence of labor unions have declined post-WWII, and this paper examines whether globalization is a contributing factor. Offshoring jobs abroad may change the composition of domestic firms and employment and thus reduce union density. Alternatively, a firms' ability to offshore may erode...