Trade, Wages, and Collective Bargaining: Evidence from France | Zendy

Juan Carluccio | Zendy; Denis Fougère | Zendy; Erwan Gautier | Zendy

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Trade, Wages, and Collective Bargaining: Evidence from France

Author(s) -

Juan Carluccio,

Denis Fougère,

Erwan Gautier

Publication year - 2014

Publication title -

ssrn electronic journal

Language(s) - English

Resource type - Journals

ISSN - 1556-5068

DOI - 10.2139/ssrn.2469169

Subject(s) - offshoring , wage , labour economics , economics , collective bargaining , low wage , efficiency wage , instrumental variable , business , outsourcing , econometrics , marketing

We estimate the impact of international trade on wages using detailed data for French manufacturing firms. We instrument firm-level trade flows with firm-specific instrumental variables based on world demand and supply shocks. Both export and offshoring shocks have a positive effect on wages. Exports increase wages similarly for all occupational categories while offshoring has heterogeneous effects. The impact of trade shocks on wages is heterogeneous across bargaining regimes. In firms with collective bargaining, the elasticity of wages with respect to both exports and offshoring is higher than in firms with no collective bargaining. The wage gains associated with collective bargaining are similar across worker categories

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