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Import competition and worker productivity in unionized firms
Review of International Economics (2000)
  • Neil Campbell, Massey University
  • Neil Vousden, Australian National University

This paper analyzes the effects of trade and labor market liberalization on wages and worker productivity/effort in a domestic unionized firm with firm-union bargaining over wages and effort. It is shown that both types of liberalization will induce a 'cold shower effect' (a rise in effort) if the union's objective function is more heavily weighted towards employment. However, the welfare effects of the two policies can differ markedly. The paper also identifies a separate productivity cost of production associated with the distortionary effect of protection on worker effort.

Publication Date
January 1, 2000
Publisher Statement
Citation only

Campbell, N & Vousden, N. (2000). Import competition and worker productivity in unionized firms. Review of International Economics, 8(2), 193-207

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© Copyright Blackwell Publishers, 2000

Citation Information
Neil Campbell and Neil Vousden. "Import competition and worker productivity in unionized firms" Review of International Economics Vol. 8 Iss. 2 (2000)
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