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Building Strategic Capacity: The Political Underpinnings of Coordinated Wage Bargaining

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  • AHLQUIST, JOHN S.

Abstract

Encompassing labor movements and coordinated wage setting are central to the social democratic economic model that has proven successful among the nations of Western Europe. The coordination of wage bargaining across many unions and employers has been used to explain everything from inequality to unemployment. Yet there has been limited theoretical and quantitative empirical work exploring the determinants of bargaining coordination. I argue formally that more unequally distributed resources across unions should inhibit the centralization of strike powers in union federations. Using membership as a proxy for union resources, I find empirical evidence for this hypothesis in a panel of 15 OECD democracies, 1950–2000. I then show that the centralization of strike powers is a strong predictor of coordinated bargaining.

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  • Ahlquist, John S., 2010. "Building Strategic Capacity: The Political Underpinnings of Coordinated Wage Bargaining," American Political Science Review, Cambridge University Press, vol. 104(1), pages 171-188, February.
    • Handle: RePEc:cup:apsrev:v:104:y:2010:i:01:p:171-188_99
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    Cited by:

    1. Meyer, Brett & Biegert, Thomas, 2019. "The conditional effect of technological change on collective bargaining coverage," LSE Research Online Documents on Economics 100305, London School of Economics and Political Science, LSE Library.
    2. Pankaj C. Patel & Cornelius A. Rietveld, 2023. "Right of association and new business entry: country-level evidence from the market sector," Small Business Economics, Springer, vol. 61(3), pages 1161-1177, October.

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