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Foreign Competition, Union and Distributive Share of Workers: Theory and Evidences from Indian Economy

Maiti, Dibyendu S. (2014) Foreign Competition, Union and Distributive Share of Workers: Theory and Evidences from Indian Economy. Trade and Development Review, 7 . pp. 33-50. ISSN 0974-4347

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    Abstract

    The paper attempts to provide an explanation for declining trend of union bargaining power with the advent of trade reformseven when substantial legislative reform measures are not undertaken. A strategic trade model withdual labour market is applied to investigate the effects of trade competition on the distributive share of formal or unionized workers. It is shown that the import competition due to tariff-cuts and foreign direct investments unambiguously hurt their wages and distributive shares in the presence of decentralised unions. Panel regression using data for the Indian economy also reveals that the foreign competition, due to tariff cuts and inward capital flow, causes expansion of non-unionised sector and depresses the distributive share of the unionised sector.

    Item Type: Journal Article
    Subjects: H Social Sciences > HB Economic Theory
    Divisions: Faculty of Business and Economics (FBE) > School of Economics
    Depositing User: Repo Editor
    Date Deposited: 25 Feb 2015 12:43
    Last Modified: 11 May 2016 14:52
    URI: http://repository.usp.ac.fj/id/eprint/7946
    UNSPECIFIED

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