Abstract

  
 

References (28)



 


 



Exchange Rates and Wages in Unionised Labour Markets


Paulo Bastos


World Bank - Research Department

Peter W Wright


University of Sheffield - Department of Economics
June 7, 2010


Abstract:     
We investigate the impact of exchange rate movements on wage determination in unionised labour markets. Using a simple model of international oligopoly, we show that organised labour has a rational incentive to accept lower wages in the face of a currency appreciation. This proposition is examined empirically using a matched worker-firm dataset for Portugal. We find results consistent with the predictions of the model, though the impact varies considerably with both worker characteristics and the regional unemployment rate.

Number of Pages in PDF File: 24

Keywords: Exchange Rates, Trade Unions, Wage Bargaining, Worker-Firm Data

JEL Classification: F31, J3, J5

working papers series


Download This Paper

Date posted: June 7, 2010  

Suggested Citation

Bastos, Paulo and Wright, Peter W, Exchange Rates and Wages in Unionised Labour Markets (June 7, 2010). Available at SSRN: http://ssrn.com/abstract=1621699 or http://dx.doi.org/10.2139/ssrn.1621699

Contact Information

Paulo Bastos
World Bank - Research Department ( email )
1818 H Street, N.W.
Washington, DC 20433
United States
Peter W Wright (Contact Author)
University of Sheffield - Department of Economics ( email )
9 Mappin Street
Sheffield, S1 4DT
UNITED KINGDOM
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 172
Downloads: 28
References:  28

© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was processed by apollo8 in 0.813 seconds