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Why do people dislike low-wage trade competition with posted workers in the service sector?
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
Stockholm University, Faculty of Social Sciences, Department of Psychology.
Stockholm University, Faculty of Social Sciences, Department of Psychology.
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2013 (English)In: The Journal of Socio-Economics, ISSN 1053-5357, Vol. 47, 82-93 p.Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
2013. Vol. 47, 82-93 p.
Keyword [en]
services trade, posted workers, wage regulations, attitude formation
National Category
Psychology Economics and Business
URN: urn:nbn:se:su:diva-96696DOI: 10.1016/j.socec.2013.09.001ISI: 000333061800009OAI: diva2:667117
Available from: 2013-11-25 Created: 2013-11-25 Last updated: 2014-04-22Bibliographically approved

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Calmfors, LarsGustafsson Sendén, MarieMontgomery, Henry
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