Bastien Alvarez, Gianluca Orefice & Farid Toubal
, 2022. "Trade Liberalization, Collective Bargaining and Workers: Wages and Working Conditions,"
CEPII Working Paper 2022-
02
, April 2022 , CEPII.
Using large scale data on Eastern European workers, we show significant and sizable deteriorations of their wages and working conditions in regions that faced large tariff liberalization and strong erosion of collective bargaining over the process of accession to the European Union. Import tariffs liberalization reduces workers' wages. The deterioration of working conditions is mostly driven by increased labor demand due to the improvement of Eastern countries' international market access. The erosion of collective bargaining worsens wages and working conditions.
Trade Liberalization ; Working Conditions ; Wages ; Labor Market Institutions ; Eastern Europe