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Trade, Wages, and Collective Bargaining: Evidence from France

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  • J. Carluccio
  • D. Fougère
  • E. Gautier

Abstract

Using a unique French firm-level dataset, we study how international trade affects the wage bargaining process at the firm level. Using instrumental variables techniques, we find that exports shocks have a positive effect on the probability that a firm-level wage agreement is signed, while shocks increasing imports of finished goods have the opposite effect. Exports increase wages for all occupational categories, whereas offshoring has heterogeneous effects. In firms where wage agreements are frequently signed, the export wage premium is larger, and blue-collar workers are protected against the negative impact of offshoring on wages.

Suggested Citation

  • J. Carluccio & D. Fougère & E. Gautier, 2014. "Trade, Wages, and Collective Bargaining: Evidence from France," Working papers 498, Banque de France.
    • Handle: RePEc:bfr:banfra:498
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    More about this item

    Keywords

    trade; wages; collective bargaining.;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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