کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
971555 | 932358 | 2012 | 10 صفحه PDF | دانلود رایگان |
We develop an oligopoly model in which firms facing unionised domestic labour markets choose between producing an intermediate good in-house and outsourcing it to a non-unionised foreign supplier that makes a relationship-specific investment in developing the intermediate. The paper sheds light on the issue of whether international outsourcing offers a means to ‘escape’ the power of domestic unions and on the existence of intra-industry wage dispersion. We show that outsourcing typically increases marginal costs even when it lowers union wages. Despite this, more powerful unions increase the incentive to outsource.
► Outsourcing typically increases marginal costs even when it lowers union wages.
► More powerful unions increase the incentive to outsource.
► Strategic interaction between ex-ante identical firms can lead to wage dispersion.
Journal: Labour Economics - Volume 19, Issue 2, April 2012, Pages 260–269