(De)unionization, trade, unemployment, and wage differentials.

This research examines the interaction of (de)unionization and trade liberalization in shaping firm productivity, market structure, trade flows, unemployment, and functional distribution (changes in the wage difference and labor income share). It introduces unemployment to the Melitz‐Ottaviano model...

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Publicado en:Southern Economic Journal Vol. 90; no. 1; pp. 121 - 156
Autores principales: Chang, Juin‐Jen, Hung, Li‐Wen, Peng, Shin‐Kun
Formato: Artículo
Publicado: Wiley-Blackwell Jul2023
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jul2023
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      pub: Wiley-Blackwell
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        164655887
        10.1002/soej.12647
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      tig:
        atl: (De)unionization, trade, unemployment, and wage differentials.
      aug:
        au:
          Chang, Juin‐Jen
          Hung, Li‐Wen
          Peng, Shin‐Kun
        affil:
          Academia Sinica, Taipei, Taiwan
          Department of International Business, Soochow University, Taipei, Taiwan
      su:
        Wage differentials
        Labor organizing
        Unemployment
        Labor productivity
        International trade
        Service industries
        Free trade
        Export trading companies
      sug:
        subj:
          Wage differentials
          Labor organizing
          Unemployment
          Labor productivity
          International trade
          Service industries
          International Trade Financing
          Service Establishment Equipment and Supplies Merchant Wholesalers
          Labor Unions and Similar Labor Organizations
          Free trade
          Export trading companies
      keyword:
        (De)unionization
        labor income share
        trade liberalization
        unemployment
        wage differential
        (De)unionization
        labor income share
        trade liberalization
        unemployment
        wage differential
      ab: This research examines the interaction of (de)unionization and trade liberalization in shaping firm productivity, market structure, trade flows, unemployment, and functional distribution (changes in the wage difference and labor income share). It introduces unemployment to the Melitz‐Ottaviano model by considering unionism in the differentiated manufacturing sector and searching frictions in the homogeneous service sector. It shows that unionization has a selection‐softening effect, leading to a non‐monotonic relationship between unionization and the number of firms and unemployment. With international trade, a unilateral increase in the degree of unionization in one country gives rise to a selection‐softening effect for domestic‐only firms and a selection‐toughening effect for exporting firms in this country, resulting in unemployment being more likely to increase relative to autarky. If openness to trade is relatively low (high), then the average wage difference for this country compared to its trading partner country rises (declines). Trade liberalization does not necessarily reduce unemployment, and depends on the relative degree of unionization between the two trading countries. In sharp contrast to the conventional notion, de‐unionization can increase, rather than decrease, the labor income share of unionized workers, provided that openness to trade is sufficiently high.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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