Minimum Wage and Collective Bargaining Reforms: A Narrative Database for Advanced Economies

Antonio Afonso, Joao Jalles and Zoe Venter

No 2022/0224, Working Papers REM from ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa

Abstract: This paper presents and describes a new database of major minimum wage and collective bargaining reforms (and counter-reforms) covering 26 advanced economies over the period 1970-2020. The main advantage of this dataset is the precise identification of the nature and date of major reforms— defined in terms of less regulation or more liberalization—, which is valuable in many empirical applications. Based on the dataset, major changes in minimum wages have been more frequent than in collective bargaining in the last decades, and the majority of these were implemented during the 1980s and 1990s. In our empirical application, we find that minimum wage reforms have a mediumrun positive impact on labor productivity and they lead to a fall in the unemployment rate. Collective bargaining reforms do not seem to affect either productivity or capital formation but they have a clear medium-term effect on the labor market. Moreover, collective bargaining reforms are more sensitive to prevailing business cycle conditions at the time of the reform (vis-à-vis minimum wage reforms).

Keywords: Labour market policies; minimum wage; collective bargaining; labour productivity; growth; local projection (search for similar items in EconPapers)
JEL-codes: C22 E24 J31 J52 (search for similar items in EconPapers)
Date: 2022-04
New Economics Papers: this item is included in nep-mac
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Working Paper: Minimum Wage and Collective Bargaining Reforms: A Narrative Database for Advance Economies (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ise:remwps:wp02242022

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