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![loading](/sites/all/modules/hf_eds/images/loading.gif)
THE IMPACT OF INTERNATIONAL OUTSOURCING ON UNIONIZATION AND WAGES: EVIDENCE FROM THE APPAREL EXPORT SECTOR IN CENTRAL AMERICA.
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![loading](/sites/all/modules/hf_eds/images/loading.gif)
- Author(s): ANNER, MARK
- Source:
ILR Review; Jan2011, Vol. 64 Issue 2, p305-322, 18p, 5 Charts- Subject Terms:
- Source:
- Additional Information
- Subject Terms:
- Abstract: It is often assumed that manufacturing workers in developing countries, as recipients of outsourced jobs, would achieve economic benefits and organizational power. The author argues that job growth in developing countries through outsourcing to competing firms has often actually resulted in declining unionization and lower wage rates relative to traditional, integrated manufacturing firms. Using time-series data on union membership from 1980-2003 for Honduras and El Salvador as well as 2004 Household Survey Data for El Salvador, he examines the determinants of unionization rates and wages in the manufacturing sectors. He finds that that competitive outsourcing hurts labor at the plant-level in three ways: 1) it reduces labor's strike leverage by geographically dispersing the production process; 2) it increases the threat of plant mobility by decreasing plant-level investments; and 3) it increases labor costs relative to total costs, which creates an incentive for employers to keep wages low and unions out. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of ILR Review is the property of Sage Publications Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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