Trade, Wages, and Collective Bargaining: Evidence from France
65 Pages Posted: 22 Jul 2014
Date Written: July 2014
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.
Keywords: trade, wages, collective bargaining
JEL Classification: F16, J51, E24
Suggested Citation: Suggested Citation