The Effect of International Competition on Union and Nonunion Wages

Using data from the May 1975 to 1981 Current Population Surveys, the authors examine the impact of international competition on union and nonunion wages. Two findings emerge from the study. First, international competition, measured by import share, was a significant determinant of union and nonunion wages: a 10% rise in the import share lowered the union wage differential by about 2%. Second, the net negative effect of a given import share on both union and nonunion wages decreased sharply in absolute magnitude as the percentage organized increased

Biology · Competition (biology) · Demographic economics · Differential (mechanical device) · Economics · International economics · International trade · Labour economics · Nonunion · Wage · Anatomy · Firm Innovation and Growth · Global trade and economics · Labor market dynamics and wage inequality · Labor Movements and Unions · Medicine

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• The Decline of U.S. Labor Unions

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• Protection, Trade, and Wages

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• Sample Selection Bias as a Specification Error

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