How International Trade Affects Union Wages: New Evidence *

We reexamine the effect of import competition on union wages using the NBER Industry Data for Imports and Exports by SIC category 1987-1994 (Feenstra, 1996). We find that the effect of import share on union wage levels and wage growth is zero by the end of the twelve-year period covering 1983-1994. These results suggest that although import competition initially reduced union wages in the late 1970s and early 1980s, by 1987 union wages were largely unaffected by import competition. Apparently, the diminished import effect results from increased union strength over the period, particularly in highly organized industries.