Abstract: This paper investigates whether free trade agreements affect unionization rates. Union leaders have often been amongst the most vocal opponents of free trade agreements, arguing that expansion of access to international markets gives employers a reduced incentive to acquiesce to union demands, as firms can simply import the goods they need rather than paying arbitrarily high prices through the labor market. In this paper, I find evidence that unionization rates are not negatively impacted as a result of free trade agreements in the U.S., suggesting that foreign competition in the labor market impacts unions through other channels. Most notably, I predict that unions will instead lower their wage demands in response to free trade agreements, which makes union members more employable.
Keywords: unions, international trade, trade agreements.
Title: The Impact of Trade Agreements on Unionization Rates
Author: Brian Towell
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Vol. 11, Issue 4, October 2023 - December 2023
Page No: 80-84
Research Publish Journals
Website: www.researchpublish.com
Published Date: 14-October-2023
