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Sebastian Braun
''Should trade unions welcome foreign investors? First evidence from Danish matched employer-employee data ''
( 2009, Vol. 29 No.2 )
While foreign direct investment (FDI) is widely believed to have an adverse effect on the bargaining power of unions and hence on union wages, little empirical research has been done to substantiate this conjecture. The present paper aims at filling this gap by analysing the effect of foreign ownership on the union wage premium in Denmark. Using matched employer-employee data, the positive effect of plant level unionisation on wages is found to vanish in foreign-owned firm.
Keywords: Collective bargaining foreign direct investment trade unions wages
JEL: F1 - Trade: General
F2 - International Factor Movements and International Business: General
Manuscript Received : Mar 16 2009 Manuscript Accepted : May 28 2009

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