THE IMPACT OF INTERNATIONAL TRADE ON UNION BEHAVIOR AND WAGE RATES

Year 2006, Issue: 15, - , 20.06.2015

Ekrem Gül

Abstract

This study criticizes, theoretically, the impact of international trade on union behavior and wage rates. It is our main finding that international trade of a certain country has an affect on the wage rates in two ways. While exports help to increase wages and employment, foreign imports may put downward pressure on earnings and employment in domestic import-competing industries. In terms of the union behavior, our findings resulted with mixed results, which mainly imply that when different countries, industries and contexts are discussed, different scenarios are prevalent, which is mentioned in the paper

Keywords

International trade, union behavior, wage rates, income inequality

THE IMPACT OF INTERNATIONAL TRADE ON UNION BEHAVIOR AND WAGE RATES

Abstract

Bu çalışma uluslarası ticaretin sendika davranışları ve ücert düzeyleri üzerindeki etkisini teorik olarak incelemektedir. Bulgularımız, bir ülkedeki uluslararası ticaret faaliyetlerinin ücert düzeyleri üzerinde iki tür etkiye sahip olduğunu göstermektedir. İhracat, ücretlerin ve istihdamın artmasına yardımcı olurken, ithalat ise yurt içinde ithalatla rekabet eden endüstrilerde kazançlar ve istihdam üzerinde aşağıya doğru baskı yapabilir. Sendika davranışları sözkonusu olduğunda ise bulgularımız karışık sonuçlar ortaya koymaktadır. Şöyleki, çalışmamızın içeriğinde değindiğimiz üzere, farklı ülkeler, endüstriler ve iş ortamları geçerli olduğunda farklı gelişmeler söz konusu olmaktadır

Keywords

Uluslararası ticaret, sendika davranışları, ücret düzeyleri, gelir eşitsizliği

References

• Akerlof, Gerge A.(1985). “Labor Contracts as Partial Gift Exchange”, Quarterly Journal of Economics, Vol. 97, pp.543-63.
• Berman, E., Bound, J., Machin, S. (1998). “Implication of skill-biased technological change: international evidence”, Quarterly Journal of Economics, 113, pp.1245-1280.
• Beyer, H., Rojas, P., Vergara, R. (1999). “Trade liberalization and wage inequality“, Journal of Development Economics, 59(1), pp.103-123.
• Bhagwati, J. (1995). "Trade and wages: choosing among alternative explanations", FRBNY Economic Policy Review, January 1995, Vol:1, lss:1 pp.42-51
• Brauer, David A. (1991). "The Effect of Imports on U.S. Manufacturing Wages", FRBNY Quarterly Review, Spring 1991, Vol: 16, lss:1, pp.14-27.
• Brauer, David A., Hickok, S.(1995). "Explaining the Growing inequality in Wages across Skill Levels", FRBNY Economic Policy Review, January 1995, Vol:1, lss:1 pp.61-71.
• Borjas, George J. (1995). "The Internalization of the U.S. Labor Market and the Wage Structure", FRBNY Economic Policy Review, July 1995, Vol:1, lss:1, pp.21-33.
• Burtless, G.(1995). "International Trade and the Rise in Earnings Inequality", Journal of Economic Literature, June 1995, Vol:33, lss:2, pp.800-817.
• Cragg, M., Epelbaum, M. (1996). “Why has wage dispersion grown in Mexico? Is it the incidence of reforms or growing demand for skills?”, Journal of Development Economics, 51, pp.99-116.
• Esquivel, G., Rodrigez-Lopez, J.A. (2003). “Technology, trade and wage inequality in Mexico before and after NAFTA”, Journal of Development Economics, 72, pp.543-565.
• Feliciano, Z. (2001). “Workers and trade liberalization: the impact of trade reforms in Mexico on wages and employment”, Industrial & Labor Relations Review, 55(1), 95-115.
• Freeman, A., Katz, J. (1991). "Monopoly Unions and the Liberalization of International Trade", Economic Journal, March 1991, Vol:103, lss:417, pp.379- 387.
• Galiani, S., Sanguinetti, P. (2003). “The impact of trade liberalization on wage inequality: evidence from Argentina”, Journal of Development Economics, 63(3), pp.343-357.
• Gaston, N., Trefler, D. (1994). "Portection Trade and Wages", Industrial & Labor Relations Review, July 1994, Vol:47, lss:4, pp.574-594.
• Gottschalk, P., Smeeding, T. (1997). “Cross-national comparisons of earnings and income inequality”, Journal of Economic Literature, 35, pp.663-687.
• Hanson, G., Harrison, A. (1999). “Trade liberalization and wage inequality in Mexico”, Industrial & Labor Relations Review, 52(2), pp.271-288.
• Krugman, P., Lawrence, R. (1993). “Trade, jobs and wages”, NBER Working Paper, 4478, pp.31-62.
• Lawrence, R., Slaughter, M. J. (1993). “International trade and American wages in the 1980s: giant sucking sound or small hiccup?”, Brooking Papers on Economic Activity, 2, pp.161-226.
• Leamer, E. (1996). “Wage inequality from international competition and technological change: theory and country experience”, American Economic Review, pp.309-329.
• Leamer, E. (1998). “In search of Stolper-Samuelson linkages between international trade and lower wages”, Brookings Institution Working Papers, 43, pp.141-202
• OECD. (1997). “Trade, earnings and employment: assessing the impact of trade with emerging economies on OECD labor markets”, OECD Employment Outlook, OECD, Paris.
• Partridge, M. (1993). "Technology, International Competitiveness, and Union Behavior", Journal of Labor Research, Spring 1993, Vol:14, lss:2, pp.131-146.
• Revenga, A. (1997). “Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing”, Journal of Labor Economics, 15, pp.520-543.
• Robbins, D. (1996). “Evidence on trade and wages in the developing world”, OECD Development Center, Technical Paper.
• Robertson, R. (2001). “Relative prices and wage inequality: evidence from Mexico”, Journal of Labor Economics, 17, pp.741-760.
• Sachs, J. D., Shatz, H. (1994). “Trade and jobs in U.S. manufacturing“, Brookings Papers on Economic Activity, 1, pp.1-84.
• Wood, A. (1995). “How trade hurt unskilled workers”, Journal of Economic Perspectives, 9, pp.57-80.
• Wood, A. (1997). “Openness and wage inequality in developing countries: the Latin American challenge to the East Asian conventional wisdom”, World Bank Economic Review, 11, pp.33-57.