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Title:Does international outsourcing depress union wages? PDF Logo
Authors:Braun, Sebastian
Scheffel, Juliane
Issue Date:2007
Series/Report no.:SFB 649 discussion paper 2007,033
Abstract:In this paper, we provide first empirical evidence on the effect of outsourcing on union wages using linked employer-employee data for Germany. We find that low skilled workers experience a decline in the union wage premium when working in industries with high outsourcing intensities. The finding applies to both firm- and sector-level agreements. Hence, outsourcing appears to deteriorate the bargaining position of unions. Outsourcing is not found to have a negative effect on the wages of low skilled employees not covered by collective bargaining agreements. While wages of medium skilled workers are largely unaffected by outsourcing, high skilled workers see their wages rise in industries with a high level of outsourcing. There is no interaction between coverage and outsourcing for these skill groups.
Subjects:Collective Bargaining
International Outsourcing
Union Wages
JEL:F16
J51
L24
Document Type:Working Paper
Appears in Collections:SFB 649 Discussion Papers, HU Berlin

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