Discussion Paper Details

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Title: Trade, Wages, and Collective Bargaining: Evidence from France

Author(s): Juan Carluccio, Denis Fougère and Erwan Gautier

Publication Date: March 2015

Keyword(s): collective bargaining, exports, firm-level wages and offshoring

Programme Area(s): International Trade and Regional Economics and Labour Economics

Abstract: We estimate the impact of international trade on wages using data for French manufacturing firms. We instrument firm-level trade flows with firm-specific instrumental variables based on world demand and supply shocks. Both export and offshoring shocks have a positive effect on wages. Exports increase wages for all occupational categories while offshoring has heterogeneous effects. The impact of trade on wages varies across bargaining regimes. In firms with collective bargaining, the elasticity of wages with respect to exports and offshoring is higher than in firms with no collective bargaining. Wage gains associated with collective bargaining are similar across worker categories.

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Bibliographic Reference

Carluccio, J, Fougère, D and Gautier, E. 2015. 'Trade, Wages, and Collective Bargaining: Evidence from France'. London, Centre for Economic Policy Research.