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The effect of globalization on union bargaining and price-cost margins of firms

[journal article]

Abraham, Filip; Konings, Jozef; Vanormelingen, Stijn

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Please use the following Persistent Identifier (PID) to cite this document:http://nbn-resolving.de/urn:nbn:de:0168-ssoar-203123

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Abstract In recent years, Europe has witnessed an accelerated process of economic integration. This paper analyzes how increased economic integration has affected labor and product markets. We use a panel of Belgian manufacturing firms to estimate price-cost margins and union bargaining power and show how various measures of globalization affect them. Import competition puts pressure on both markups and union bargaining power, especially when there is increased competition from low wage countries. This suggests that increased globalization is associated with a moderation of wage claims in unionized countries, which should be associated with positive effects on employment.
Classification Political Economy; Labor Market Research
Free Keywords Markups; Trade unions; International trade; F16; J50; L13
Document language English
Publication Year 2009
Page/Pages p. 13-36
Journal Review of World Economics, 145 (2009) 1
DOI http://dx.doi.org/10.1007/s10290-009-0003-8
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)