When union’s activity matters: The impact of union centralization on economic growth in OECD countries

Phu Nguyen-Van and Isabelle Terraz

Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg

Abstract: It is nowadays accepted that labor market institutions matter in the economic development. However, empirical studies on unions’ effect are not univocal. Besides traditional indicators of unions’ presence, this paper uses a new indicator to estimate a growth equation using a recent panel dataset on OECD countries. We provide new insight on the impact of unions on the longrun performance of OECD economies. It is shown that a bargaining coverage lower than average and a high degree of union centralization can be harmful to growth. Our study makes the case for new indicators that capture more accurately the bargaining systems.

Keywords: Bargaining indicators; coverage; Economic growth; Union centralization; Wage bargaining. (search for similar items in EconPapers)
JEL-codes: J51 O40 O43 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: When union’s activity matters: the impact of union centralization on economic growth in OECD countries (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ulp:sbbeta:2017-38

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