Abstract
Summary We study in this paper both theoretically and empirically the influence of trade union rights in origin countries on bilateral migration flows. Theoretically, trade union rights are supposed to increase the bargaining power of workers. Alternatively, it may benefit only to formal workers if these rights are not applied in the informal sector. We then propose different alternative indexes measuring trade union rights. We find that, all things being equal, more trade union rights tend to be associated with less migration of low-skill and high-skilled workers. Effects are not significant for intermediate skill level. Lastly, we show that social tensions may have the opposite effect. If trade union rights are associated with more social instability, it may increase the level of migration. It emphasizes the importance of social dialogue.
Highlights
In 2006, 4 millions of permanent migrants entered OECD countries (OECD, 2008)
Our first index index_TU aggregates the number of strikes per year, the number of workers involved in trade unions activities, the index civil rights, from Freedom House measuring among other things the effective level of trade union rights, and an index proposed by Botero et al (2004), index_col_barg13, which measures the statutory protection and power of union6
Lowskilled workers may benefit from trade union rights through an increased bargaining power, higher wages and better working conditions
Summary
In 2006, 4 millions of permanent migrants entered OECD countries (OECD, 2008). It represents an increase of 5% compared to the previous year. One major issue is the influence of workers migration on the labor market in destination countries (see for example Grossman, 1982; Borjas, 1994; 1999; Borjas, Freeman and Katz, 1997). The empirical literature on this topic established the ambiguous links between labor standards and international trade (Brown, 2000; Granger, 2005), foreign direct investment (Kucera, 2002), economic coordination (Aidt and Tzannatos, 2002), productivity (Brown, Deardorff, and Stern, 1996; Maskus, 1997; OCDE, 1996), long-term per capita income (Bazillier, 2008) and income inequalities (Bazillier and Sirven, 2008) Most of these outcomes may influence the determinants of emigration. This paper proposes to study the influence of freedom of association and collective bargaining rights on migration in source countries.
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