Trade, Wages and Collective Bargaining: Evidence from France

35 Pages Posted: 27 May 2015

See all articles by Juan Carluccio

Juan Carluccio

Banque de France; Paris School of Economics

Denis Fougère

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE); National Center for Scientific Research (CNRS); IZA Institute of Labor Economics

Erwan Gautier

Banque de France - Centre de Recherche

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Date Written: May 2015

Abstract

We estimate the impact of international trade on wages using data for French manufacturing firms. We instrument firm‐level trade flows with firm‐specific instrumental variables based on world demand and supply shocks. Both export and offshoring shocks have a positive effect on wages. Exports increase wages for all occupational categories while offshoring has heterogeneous effects. The impact of trade on wages varies across bargaining regimes. In firms with collective bargaining, the elasticity of wages with respect to exports and offshoring is higher than in firms with no collective bargaining. Wage gains associated with collective bargaining are similar across worker categories.

Suggested Citation

Carluccio, Juan and Fougere, Denis and Gautier, Erwan, Trade, Wages and Collective Bargaining: Evidence from France (May 2015). The Economic Journal, Vol. 125, Issue 584, pp. 803-837, 2015, Available at SSRN: https://ssrn.com/abstract=2610931 or http://dx.doi.org/10.1111/ecoj.12262

Juan Carluccio (Contact Author)

Banque de France ( email )

Paris
France

Paris School of Economics ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Denis Fougere

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE) ( email )

15, Boulevard Adolphie PINARD
92245 Malakoff Cedex
France
+33 1 4117 7713 (Phone)
+33 1 4117 7634 (Fax)

National Center for Scientific Research (CNRS)

3, rue Michel-Ange
Paris cedex 16, 75794
France

IZA Institute of Labor Economics

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

Erwan Gautier

Banque de France - Centre de Recherche ( email )

31 rue Croix des Petits Champs
75049 Paris Cedex 01
France

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