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The Quality of Industrial Relations and Unemployment in Developing Countries

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  • Horst Feldmann

Abstract

Using data from 45 countries for six years in the period 1995 to 2003, the author analyses whether the quality of industrial relations affects unemployment in developing countries. To measure the quality of industrial relations, the author uses the results of surveys in which senior business executives characterized the industrial relations of their countries of residence. According to the regression results, cooperative (confrontational) industrial relations are likely to lower (increase) unemployment. In general, the magnitude of the effect appears to be moderate. It seems to be small among women. The results are robust to variations in specification.

Suggested Citation

  • Horst Feldmann, 2009. "The Quality of Industrial Relations and Unemployment in Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 13(1), pages 56-69, February.
    • Handle: RePEc:bla:rdevec:v:13:y:2009:i:1:p:56-69
    DOI: 10.1111/j.1467-9361.2008.00459.x
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    References listed on IDEAS

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    1. Horst Feldmann, 2007. "Economic Freedom and Unemployment around the World," Southern Economic Journal, John Wiley & Sons, vol. 74(1), pages 158-176, July.
    2. Edward C. Prescott, 2004. "Why do Americans work so much more than Europeans?," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 28(Jul), pages 2-13.
    3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    4. Jakob De Haan & Susanna Lundström & Jan‐Egbert Sturm, 2006. "Market‐oriented institutions and policies and economic growth: A critical survey," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 157-191, April.
    5. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    6. Horst Feldmann, 2006. "Credit Market Regulation and Labor Market Performance Around the World," Kyklos, Wiley Blackwell, vol. 59(4), pages 497-525, November.
    7. William N. Cooke & Deborah S. Noble, 1998. "Industrial Relations Systems and US Foreign Direct Investment Abroad," British Journal of Industrial Relations, London School of Economics, vol. 36(4), pages 581-609, December.
    8. William N. Cooke, 1997. "The Influence of Industrial Relations Factors on U.S. Foreign Direct Investment Abroad," ILR Review, Cornell University, ILR School, vol. 51(1), pages 3-17, October.
    9. Horst Feldmann, 2006. "Government Size and Unemployment: Evidence from Industrial Countries," Public Choice, Springer, vol. 127(3), pages 443-459, June.
    10. Horst Feldmann, 2004. "Rechtssystem und Arbeitsmarkt-Performance," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 124(4), pages 471-509.
    11. Horst Feldmann, 2006. "The Quality of Industrial Relations and Labour Market Performance," LABOUR, CEIS, vol. 20(3), pages 559-579, September.
    12. Horst Feldmann, 2005. "Labour Market Institutions and Labour Market Performance in Transition Countries," Post-Communist Economies, Taylor & Francis Journals, vol. 17(1), pages 47-82.
    13. Andrea Bassanini & Romain Duval, 2007. "The determinants of unemployment across OECD countries: Reassessing the role of policies and institutions," OECD Economic Studies, OECD Publishing, vol. 2006(1), pages 7-86.
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    Cited by:

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    2. Brändle, Tobias, 2024. "Unions and Collective Bargaining: The Influence on Wages, Employment and Firm Survival," GLO Discussion Paper Series 1457, Global Labor Organization (GLO).

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