Record Details

Wage Differentials: Trade Openness and Wage Bargaining

Brazilian Review of Econometrics

View Archive Info
 
 
Field Value
 
Title Wage Differentials: Trade Openness and Wage Bargaining
 
Creator Gonzaga, Gustavo; PUC-RIO
Terra, Cristina; Université Cergy-Pontoise
Muriel Hernandez, Beatriz
 
Subject —
—
 
Description We build a theoretical model that incorporates unionization in thelabor market into a Heckscher-Ohlin-Samuelson (HOS) framework to in-vestigate the impact of unionization on the Stolper-Samuelson Theorem.To capture the American economy case, we assume that unskilled labor inthe manufactured goods sector is unionized, and that sector is intensivein skilled labor, and that trade liberalization increases the relative priceof manufactured goods. In the HOS model, trade liberalization inducesa reallocation of production towards the sector that uses intensively thecountry's most abundant factor. The resulting change in relative labor de-mand impacts wage bargaining in the unionized sector, which, in turn, hasa dampening eect on the Stolper-Samuelson eect. Moreover, wages ofunionized workers are even less responsive to trade liberalization. Throughtraditional mandated-wages regressions, we show that skilled-wage dier-entials changes were less pronounced among more unionized sectors in theU.S. economy for the 1979-1990 period.
 
Publisher Sociedade Brasileira de Econometria
 
Contributor CNPq
 
Date 2014-03-26
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
—
 
Format application/pdf
 
Identifier http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/20485
10.12660/bre.v34n12014.20485
 
Source Brazilian Review of Econometrics; Vol 34, No 1 (2014); 3-23
Brazilian Review of Econometrics; Vol 34, No 1 (2014); 3-23
1980-2447
 
Language eng
 
Relation http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/20485/44094
 
Rights Copyright (c) 2015 Brazilian Review of Econometrics