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Import Competition and Worker Productivity in Unionized Firms

Vousden, Neil; Campbell, Neil


This paper analyzes the effects of trade and labor market liberalization on wages and worker productivity/effort in a domestic unionized firm with firm-union bargaining over wages and effort. It is shown that both types of liberalization will induce a 'cold shower effect' (a rise in effort) if the union's objective function is more heavily weighted towards employment. However, the welfare effects of the two policies can differ markedly. The paper also identifies a separate productivity cost of...[Show more]

CollectionsANU Research Publications
Date published: 2000
Type: Journal article
Source: Review of International Economics


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