Globalisation and union opposition to technological change

Kjell Lommerud (), Frode Meland () and Odd Rune Straume
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Frode Meland: University of Bergen, Department of Economics, Postal: Hermann Fossgt. 6, N-5007 Bergen, Norway

No 01/05, Working Papers in Economics from University of Bergen, Department of Economics

Abstract: We find that trade unions have a rational incentive to oppose the adoption of labour-saving technology when labour demand is inelastic and unions care much for employment relative to wages. Trade liberalisation typically increases trade union technology opposition. These conclusions are reached in a model of international duopoly with monopoly wage setting in one of the countries, and two-way trade. An important stepping stone for the result is to note that even though trade liberalisation means a tougher competitive environment for firms, labour demand tends to increase. We also find that the incentive for technology opposition is stronger in the more technologically advanced country and in the country with the larger home market, complementing earlier explanations for technological catch-up and leapfrogging.

Keywords: Trade liberalisation; technology adoption; international unionised oligopoly. (search for similar items in EconPapers)
JEL-codes: F12 F16 J51 L13 O33 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2005-01-04
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Related works:
Journal Article: Globalisation and union opposition to technological change (2006)
Working Paper: Globalization and Union Opposition to Technological Change (2005)
Working Paper: Globalisation And Union Opposition To Technological Change (2004)
Working Paper: Globalisation and union opposition to technological change (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:bergec:2005_001

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