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Title:Why do people dislike low-wage trade competition with posted workers in the service sector? PDF Logo
Authors:Calmfors, Lars
Dimdins, Girts
Gustafsson Sendén, Marie
Montgomery, Henry
Stavlöt, Ulrika
Issue Date:2012
Series/Report no.:CESifo Working Paper: Trade Policy 3842
Abstract:The issue of low-wage competition in services trade involving posted workers is controversial in the EU. Using Swedish survey data, people's attitudes are found to be more negative to such trade than to goods trade. The differences depend on both a preference for favouring social groups to which individuals belong (here the domestic population) and altruistic justice concerns for foreign workers. In small-group experiments we find a tendency for people to adjust their evaluations of various aspects of trade to their general attitude. This tendency is stronger for those opposed to than those in favour of low-wage trade competition. This may indicate that the former group forms its attitudes in a less rational way than the latter group.
Subjects:services trade
posted workers
wage regulations
attitude formation
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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