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.
| Original language | English |
|---|---|
| Pages (from-to) | 13-36 |
| Number of pages | 24 |
| Journal | Review of World Economics |
| Volume | 145 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - Apr 2009 |
| Externally published | Yes |
Fingerprint
Keywords
- International trade
- Markups
- Trade unions
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
Cite this
The effect of globalization on union bargaining and price-cost margins of firms. / Abraham, Filip; Konings, Jozef; Vanormelingen, Stijn.
In: Review of World Economics, Vol. 145, No. 1, 04.2009, p. 13-36.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - The effect of globalization on union bargaining and price-cost margins of firms
AU - Abraham, Filip
AU - Konings, Jozef
AU - Vanormelingen, Stijn
PY - 2009/4
Y1 - 2009/4
N2 - 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.
AB - 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.
KW - International trade
KW - Markups
KW - Trade unions
UR - http://www.scopus.com/inward/record.url?scp=64849084360&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=64849084360&partnerID=8YFLogxK
U2 - 10.1007/s10290-009-0003-8
DO - 10.1007/s10290-009-0003-8
M3 - Article
VL - 145
SP - 13
EP - 36
JO - Review of World Economics
JF - Review of World Economics
SN - 1610-2878
IS - 1
ER -