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

Filip Abraham, Jozef Konings, Stijn Vanormelingen

Research output: Contribution to journalArticlepeer-review

42 Citations (Scopus)

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 languageEnglish
Pages (from-to)13-36
Number of pages24
JournalReview of World Economics
Volume145
Issue number1
DOIs
Publication statusPublished - Apr 2009

Keywords

  • International trade
  • Markups
  • Trade unions

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Fingerprint Dive into the research topics of 'The effect of globalization on union bargaining and price-cost margins of firms'. Together they form a unique fingerprint.

Cite this