Hit by the Silk Road: how wage coordination in Europe mitigates the China shock*

Coordination in collective wage setting can constrain potential monopoly gains to unions non-traded-goods industries. Countries with national coordination thus stabilize overall employment against fluctuations and shocks the world economy. We investigate this argument by exploring within-country variation exposure competition from China 13 European countries. Our estimates demonstrate that countries uncoordinated setting, regions higher import experienced a marked fall employment, while no such effects. show our findings are robust alternative measures of coordination, industry classifications, trade exposure. This article is protected copyright. All rights reserved.