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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/19009
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| Title: | | Can deunionization lead to international outsourcing?  |
| Authors: | | Lommerud, Kjell Erik Meland, Frode Straume, Odd Rune |
| Issue Date: | | 2005 |
| Series/Report no.: | | CESifo working papers 1545 |
| Abstract: | | We analyze unionized firms? incentives to outsource intermediate goods production to foreign (low-cost) subcontractors. Such outsourcing leads to increased wages for the remaining inhouse production. We find that stronger unions, which imply higher domestic wages, reduce incentives for international outsourcing. Though somewhat surprising, this result provides a theoretical reconciliation of the empirically observed trends of deunionization and increased international outsourcing in many countries. We further show that globalization - interpreted as either market integration or increased product market competition - will increase incentives for international outsourcing. |
| Subjects: | | international outsourcing deunionization globalization |
| JEL: | | L24 J51 F16 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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