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

Preview

PDF Download (370kB) | Preview

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 00:43
Last Modified:	11 May 2016 02:52
URI:	http://repository.usp.ac.fj/id/eprint/7946

UNSPECIFIED

Actions (login required)

View Item