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Article Title

Exchange Rates and Wages in Unionized Labor Markets

Abstract

The authors investigate the impact of exchange rate movements on wage determination in unionized labor markets. Using a simple model of international oligopoly, the authors show that organized labor has a rational incentive to accept lower wages in the face of a currency appreciation. They examine this proposition empirically using a matched worker-firm data set for Portugal and, though the impact varies considerably with worker characteristics, find results consistent with the predictions of the model.

As of August 31, 2014, the ILR Review is published by SAGE. Please visit the journal site to read this article.

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