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FY360° | The impact of trade on wages, and the role of collective bargaining

International trade has significant effects on domestic labour demand. It opens up new markets for export, but also creates opportunities for off-shoring.


This column presents the results of a study on trade, wages and collective bargaining using data on French manufacturing firms. Both exporting and offshoring are found to have positive effects on wages, with collective bargaining agreements, particularly those at the firm-level, seeing greater wage gains for all types of worker.

Wage inequality has increased in the past three decades, affecting both developed and developing countries alike. During the same period, international trade flows have grown significantly, with trade in intermediate goods and global production chains taking an increasingly predominant role. Put together, these developments have led researchers to reconsider trade integration as one important factor behind the rise in wage inequality...

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Jeudi 16 Avril 2015




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