EconPapers    
Economics at your fingertips  
 

Unemployment and the coverage extension of collective wage agreements

Fabrice Murtin (), Alain de Serres () and Alexander Hijzen ()

European Economic Review, 2014, vol. 71, issue C, 52-66

Abstract: This paper examines how the extension of collective wage bargaining agreements to non-unionized firms affects unemployment. Testing a large number of econometric specifications on data from 15 OECD countries observed between 1965 and 2007, we find a positive, significant and robust interaction between the tax wedge and the degree of coverage extension of collective wage bargaining agreements. More specifically, our results suggest that the tax wedge has a larger positive effect on unemployment than any other labour market policy in countries with wide extension of collective wage agreements’ coverage such as France or Spain. Conversely, in countries where coverage extension is close to zero as in Nordic countries, unemployment is essentially insensitive to changes in the tax wedge.

Keywords: Unemployment; Unions; Collective wage agreements; Unemployment turnover; Labour market institutions (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S001429211400097X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Unemployment and the coverage extension of collective wage agreements (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:71:y:2014:i:c:p:52-66

DOI: 10.1016/j.euroecorev.2014.06.010

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-07-14
Handle: RePEc:eee:eecrev:v:71:y:2014:i:c:p:52-66