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Rent Sharing with Footloose Production. Foreign Ownership and Wages Revisited

Balsvik, Ragnhild; Sæthre, Morten
Working paper
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Discussionpaper.pdf (609.3Kb)
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http://hdl.handle.net/11250/222551
Utgivelsesdato
2014-09
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  • Discussion papers (SAM) [608]
Sammendrag
We present a bargaining model of wage and employment determina-

tion, where we show that foreign acquisitions might hurt the bargaining

outcome of powerful unions by giving the firm a credible threat to move

production abroad. Using detailed data on firms and workers in manufac-

turing, including information on union membership and foreign ownership,

we find, in line with the predictions of our model, that foreign acquisitions

negatively impact the outcome of workers in highly unionized plants.
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SAM
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Discussion paper;30/14

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