DOCUMENT DE TRAVAIL N ° 498 TRADE , WAGES , AND COLLECTIVE BARGAINING : EVIDENCE FROM

Using a unique French firm-level dataset, we study how international trade affects the wage bargaining process at the firm level. Using instrum ental variables techniques, we find that exports shocks have a positive effect on the probab ility that a firm-level wage agreement is signed, while shocks increasing imports of finished goods have the opposite effect. Exports increase wages for all occupational categories, whe reas offshoring has heterogeneous effects. In firms where wage agreements are frequently signe d, th export wage premium is larger, and blue-collar workers are protected against the negat ive impact of offshoring on wages.

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