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Title: The Effect of Globalization on Union Bargaining and Price-Cost Margins of Firms
Authors: Abraham, Filip * ×
Konings, Joep *
Vanormelingen, Stijn * #
Issue Date: Apr-2009
Publisher: Springer
Series Title: Review of World Economics vol:145 issue:1 pages:13-36
Abstract: In recent years, Europe has witnessed an accelerated process of economic integration. Trade barriers were removed, the euro was introduced and ten new member states have joined the European Union. This paper analyzes how this process of increased economic integration has affected labor and product markets. To this end, 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. We find that 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.
ISSN: 1610-2878
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Center for Research on Economic Markets and their Environments - HUB-EHSAL
Faculty of Economics and Business (FEB) - miscellaneous
LICOS - Centre for Institutions and Economic Performance @ Leuven
Research Center of International Economics @ Leuven
* (joint) first author
× corresponding author
# (joint) last author

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