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Trade, Wages, and Collective Bargaining: Evidence from France
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Trade, Wages, and Collective Bargaining: Evidence from France

Author

Listed:
  • Carluccio, Juan

    (Banque de France)

  • Fougère, Denis

    (Sciences Po, Paris)

  • Gautier, Erwan

    (Banque de France)

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. Keywords: exports, offshoring, firm-level wages, collective bargaining.

Suggested Citation

  • Carluccio, Juan & Fougère, Denis & Gautier, Erwan, 2015. "Trade, Wages, and Collective Bargaining: Evidence from France," IZA Discussion Papers 8894, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8894
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    More about this item

    Keywords

    exports; offshoring; firm-level wages; collective bargaining;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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