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Why do people dislike low-wage trade competition with posted workers in the service sector?

  • Lars Calmfors*
  • , Girts Dimdins
  • , Marie Gustafsson Sendén
  • , Henry Montgomery
  • , Ulrika Stavlöt
  • *Corresponding author for this work
  • Stockholm University
  • Fores

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

The issue of low-wage competition in services trade involving posted workers is controversial in the EU. Using Swedish survey data, people's attitudes are found to be more negative to such trade than to goods trade. The differences depend on both a preference for favouring social groups to which individuals belong (the domestic population) and altruistic justice concerns for foreign workers. In small-group experiments, we find a tendency for people to adjust their evaluations of various aspects of trade to their general attitude. This tendency is stronger for those opposed to than those in favour of low-wage trade competition. This may indicate that the former group forms its attitudes in a less rational way than the latter group.

Original languageEnglish
Pages (from-to)82-93
Number of pages12
JournalJournal of Socio-Economics
Volume47
DOIs
Publication statusPublished - Dec 2013

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 10 - Reduced Inequalities
    SDG 10 Reduced Inequalities

Keywords

  • Attitude formation
  • D010
  • F160
  • Posted workers
  • Services trade
  • Wage regulations

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