Does Trade Liberalization Always Decrease Union Bargaining Power?

University of Brazil Economic Discussion Paper

23 Pages Posted: 15 Sep 2004

See all articles by Jorge Arbache

Jorge Arbache

University of Brasilia - Department of Economics

Date Written: September 2004

Abstract

The theoretical and empirical literature shows that union wages are more responsive to international import competition than nonunion wages, thus, reducing unions bargaining power. In this paper, we track the influence of unions on wages in Brazil before and after the trade liberalization in the beginning of the 1990s. We find that union bargaining power increased rather than decreased after economic openness. Our results seem to be related to the bargaining framework prevailing in the Brazilian labor market.

Keywords: Union, trade liberalization, wage structure, wage dispersion, Brazil

JEL Classification: F16, J31, J51

Suggested Citation

Arbache, Jorge, Does Trade Liberalization Always Decrease Union Bargaining Power? (September 2004). University of Brazil Economic Discussion Paper. Available at SSRN: https://ssrn.com/abstract=590285 or http://dx.doi.org/10.2139/ssrn.590285

Jorge Arbache (Contact Author)

University of Brasilia - Department of Economics ( email )

Campus Universitário Darcy Ribeiro
Asa Norte
Brasília, Distrito Federal 70910-900
Brazil
+ 55 61 8194 4529 (Phone)

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