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Title:How bad is globalization for labour standards in the north? PDF Logo
Authors:Donado, Alejandro
Wälde, Klaus
Issue Date:2010
Series/Report no.:Würzburg economic papers 84
Abstract:We analyse a world consisting of 'the North' and 'the South' where labour standards in the North are set by trade unions. Standards set by unions tend to increase output and welfare. There are no unions in the South and work standards are suboptimal. Trade between these two countries can imply a reduction in work standards in the North. Moreover, when trade unions are established in the South, the North, including northern unions, tend to lose out. Quantitatively, these effects are small and overcompensated for by gains in the South. The existing empirical literature tends to support our findings.
Subjects:Occupational health and safety
trade unions
international trade
welfare
JEL:J51
J81
F16
F21
Document Type:Working Paper
Appears in Collections:W.E.P. - Würzburg Economic Papers, Lst. f. VWL, Geld u. internat. Wirtschaftsbeziehungen, Universität Würzburg

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