MURAL - Maynooth University Research Archive Library

    Strategic investment and international outsourcing in unionised oligopoly

    Leahy, Dermot and Montagna, Catia (2012) Strategic investment and international outsourcing in unionised oligopoly. Labour Economics, 19 (2). pp. 260-269. ISSN 0927-5371

    Download (8MB) | Preview

    Share your research

    Twitter Facebook LinkedIn GooglePlus Email more...

    Add this article to your Mendeley library


    We develop an oligopoly model in which fi rms facing unionised domestic labour markets choose between producing an intermediate good in-house and outsourcing it to a non-unionised foreign supplier that makes a relationship-speci fi c investment in developing the intermediate. The paper sheds light on the issue of whether international outsourcing offers a means to ‘ escape ’ the power of domestic unions and on the existence of intra-industry wage dispersion. We show that outsourcing typically increases marginal costs even when it lowers union wages. Despite this, more powerful unions increase the incentive to outsource.

    Item Type: Article
    Keywords: Outsourcing; Unionisation; Wage dispersion; Strategic investment; Oligopol;
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 5724
    Identification Number:
    Depositing User: Dermot Leahy
    Date Deposited: 23 Jan 2015 11:46
    Journal or Publication Title: Labour Economics
    Publisher: Elsevier
    Refereed: Yes
    Use Licence: This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

    Repository Staff Only(login required)

    View Item Item control page


    Downloads per month over past year

    Origin of downloads