Sabien Dobbelaere, Catherine Fuss, Mark Vancauteren
{"title":"Offshoring and Labor Market Power: Comparing Belgian and Dutch Firms","authors":"Sabien Dobbelaere, Catherine Fuss, Mark Vancauteren","doi":"10.1111/irel.12394","DOIUrl":null,"url":null,"abstract":"<p>We study the relationship between offshoring and labor market imperfections at the firm level in Belgium and the Netherlands. In both countries, wage-markup pricing stemming from workers' monopoly power is more prevalent than wage-markdown pricing originating from firms' monopsony power. Offshoring is associated with a higher prevalence and intensity of wage markdowns, driven by an increase in productivity that is only imperfectly passed through into an increase in wages. The lower firm-level productivity-wage pass-through in Belgium, attributed to its more centralized bargaining structure, makes wage markdowns more responsive to offshoring.</p>","PeriodicalId":47700,"journal":{"name":"Industrial Relations","volume":"65 1","pages":"80-99"},"PeriodicalIF":2.6000,"publicationDate":"2025-06-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/irel.12394","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Industrial Relations","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/irel.12394","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"INDUSTRIAL RELATIONS & LABOR","Score":null,"Total":0}
引用次数: 0
Abstract
We study the relationship between offshoring and labor market imperfections at the firm level in Belgium and the Netherlands. In both countries, wage-markup pricing stemming from workers' monopoly power is more prevalent than wage-markdown pricing originating from firms' monopsony power. Offshoring is associated with a higher prevalence and intensity of wage markdowns, driven by an increase in productivity that is only imperfectly passed through into an increase in wages. The lower firm-level productivity-wage pass-through in Belgium, attributed to its more centralized bargaining structure, makes wage markdowns more responsive to offshoring.
期刊介绍:
Corporate restructuring and downsizing, the changing employment relationship in union and nonunion settings, high performance work systems, the demographics of the workplace, and the impact of globalization on national labor markets - these are just some of the major issues covered in Industrial Relations. The journal offers an invaluable international perspective on economic, sociological, psychological, political, historical, and legal developments in labor and employment. It is the only journal in its field with this multidisciplinary focus on the implications of change for business, government and workers.