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Further evidence on the effect of foreign competition on industry level wages

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Conclusions

This paper has examined the impact of trade changes on industry level wage outcomes in a bargaining framework. The results suggest that on average increases in trade, whether emanating from imports or exports, serve to decrease wage changes. This evidence is consistent with the view that foreign trade acts to moderate demand for an industry’s output and hence to discipline wage setting and is consistent with what Konings and Vandenbussche (1995) reported for UK manufacturing.

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Authors
  1. David Greenaway
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  2. Robert Hine
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  3. Peter Wright
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Greenaway, D., Hine, R. & Wright, P. Further evidence on the effect of foreign competition on industry level wages. Weltwirtschaftliches Archiv 136, 522–538 (2000). https://doi.org/10.1007/BF02707292

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