Can domestic unions gain from offshoring? |
| |
Authors: | Giuseppe Bognetti Michele Santoni |
| |
Institution: | 1. DEAS, Università degli Studi di Milano, Via Conservatorio 7, 20122, Milan, Italy
|
| |
Abstract: | This paper considers a unionised monopolistic firm producing a final good with isoelastic demand by using two intermediate
commodities, one of which can be either imported from a low-wage country or bought from domestic subcontractors. The paper
shows that, notwithstanding wage moderation, the union is better off when the firm chooses offshoring rather than domestic
sourcing. The firm is the less likely to choose offshoring the more wage-oriented is the union and the higher is the union
bargaining power in the wage negotiation. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|