Why Isn't Productivity More Popular? A Bargaining Power Approach to the Pay/Productivity Linkage in Canada

Mathieu Dufour () and Ellen Russell ()

International Productivity Monitor, 2015, vol. 28, 47-62

Abstract: Canadian real labour income has increasingly lagged behind productivity growth. This article employs a bargaining power approach to wage determination to explore the hypothesis that some public polices intended to promote productivity growth may have contributed to the erosion of worker bargaining power, thereby reducing workers’ capacity to benefit from productivity growth. We present an econometric analysis of several policies that supports this hypothesis.

Keywords: Labour Income; Bargaining Power; Pay/Productivity Linkage; Wages; Income; Public Policy; Canada; Worker Bargaining Power (search for similar items in EconPapers)
JEL-codes: C78 D24 E60 J28 J38 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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