Organized Labor and the Scope of International Specialization

46 Pages Posted: 22 Jun 2004

See all articles by Robert W. Staiger

Robert W. Staiger

Stanford University; University of Wisconsin - Madison - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: February 1988

Abstract

This paper examines the interaction between union wages and the international pattern of production and trade. If union goods are heterogeneous in labor intensity, the introduction of an active union in the domestic country causes only the least labor-intensive range of union goods to be produced there, with goods of greatest labor intensity produced abroad due to the relatively high cost of domestic union Labor. A narrowing of the scope of domestic union production will eliminate relatively labor-intensive goods, leading a rent-maximizing union to raise its union premium. The implications of this union behavior for comparative statics results are considered.

Suggested Citation

Staiger, Robert W., Organized Labor and the Scope of International Specialization (February 1988). NBER Working Paper No. w2514, Available at SSRN: https://ssrn.com/abstract=425548

Robert W. Staiger (Contact Author)

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University of Wisconsin - Madison - Department of Economics ( email )

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