Macroeconomic outcomes, collective bargaining and intersectoral productivity differentials: a panel approach

Evangelia Papapetrou () and Pinelopi Tsalaporta ()
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Evangelia Papapetrou: National and Kapodistrian University of Athens
Pinelopi Tsalaporta: National and Kapodistrian University of Athens

Empirica, 2018, vol. 45, issue 4, No 6, 765-799

Abstract: Abstract Using a sample of 19 advanced countries from 1990 to 2014 and an Arellano–Bover/Blundell–Bond linear dynamic GMM estimator along with a bootstrap-based bias correction fixed effects estimator for dynamic panels, the paper examines the macroeconomic impact of collective bargaining structures in a context of varying intersectoral heterogeneity in productivity growth among the exposed and sheltered sectors of the economy. Results show a dampening impact of pattern and centralized bargaining structures on unemployment. However, strong domestic demand is a key precondition for such a favourable effect to materialize. Uncoordinated and centralized bargaining structures are the most efficient in terms of labour cost restraint while industry bargaining moderates labour cost growth as intersectoral productivity differentials widen.

Keywords: Macroeconomic performance; Collective bargaining; Intersectoral productivity differentials; Unemployment; Labour cost growth; External and fiscal balances (search for similar items in EconPapers)
JEL-codes: E02 F1 F16 J3 J5 J64 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10663-017-9389-z

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