The Effects of International Competiton on Collective Bargaining Outcomes: a Comparison of the United States and Canada

42 Pages Posted: 8 Jul 2004 Last revised: 31 Aug 2010

See all articles by John M. Abowd

John M. Abowd

U.S. Census Bureau; Cornell University Department of Economics; Labor Dynamics Institute; School of Industrial and Labor Relations; NBER (on leave); CREST; IZA Institute of Labor Economics

Thomas Lemieux

University of British Columbia (UBC) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: May 1990

Abstract

We study the effects of import and export competition on collectively bargained wage settlements and bargaining unit employment from the sixties to the mid-eighties for the United States and Canada. Both value-based and pricebased measures of international competition are considered. We distinguish between the expected effects of increased international trade on new collective bargaining agreements and the realized effects over the life of existing agreements. Using value-based trade measures, the estimated effect of an increase in import domestic market share, holding constant the rate of growth of the domestic market, is negative for employment in both countries and exceeds the effect of a comparable change in the size of the domestic market. The import effect on wage rates is also negative for the United States but not for Canada. The import wage effect in the U.S. is also larger than the effect of a comparable change in the domestic market size. The estimated effect of increased export growth is positive for employment in both countries. The export effect on employment is comparable in magnitude to the effect of a change in the size of the domestic market. The export effect on wage rates is mixed-weakly positive for the U.S. and ambiguous for Canada. For Canada, we also estimate world price effects. Increases in the world import price index for the industry are associated with increased union employment. Increases in the world import price index for the industry are associated with increased union employment and lower wage settlements.

Suggested Citation

Abowd, John Maron and Lemieux, Thomas, The Effects of International Competiton on Collective Bargaining Outcomes: a Comparison of the United States and Canada (May 1990). NBER Working Paper No. w3352, Available at SSRN: https://ssrn.com/abstract=238154

John Maron Abowd (Contact Author)

U.S. Census Bureau ( email )

4600 Silver Hill Road
Washington, DC 20233
United States
+1.301.763.5880 (Phone)

Cornell University Department of Economics ( email )

261 Ives Hall
Ithaca, NY 14853-3901
United States

HOME PAGE: http://www.economics.cornell.edu

Labor Dynamics Institute ( email )

Ithaca, NY 14853-3901
United States

HOME PAGE: http://www.ilr.cornell.edu/LDI/

School of Industrial and Labor Relations ( email )

Ithaca, NY 14853-3901
United States

HOME PAGE: http://www.ilr.cornell.edu/LDI/

NBER (on leave) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

CREST ( email )

92245 Malakoff Cedex
France

HOME PAGE: http://www.crest.fr/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Thomas Lemieux

University of British Columbia (UBC) - Department of Economics ( email )

997-1873 East Mall
Vancouver, BC V6T 1Z1
Canada

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States
514-343-2395 (Phone)
514-343-5831 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
28
Abstract Views
1,247
PlumX Metrics