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

Author

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  • Evangelia Papapetrou

    (National and Kapodistrian University of Athens
    Bank of Greece)

  • Pinelopi Tsalaporta

    (National and Kapodistrian University of Athens
    Bank of Greece)

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.

Suggested Citation

  • Evangelia Papapetrou & Pinelopi Tsalaporta, 2018. "Macroeconomic outcomes, collective bargaining and intersectoral productivity differentials: a panel approach," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(4), pages 765-799, November.
    • Handle: RePEc:kap:empiri:v:45:y:2018:i:4:d:10.1007_s10663-017-9389-z
    DOI: 10.1007/s10663-017-9389-z
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    References listed on IDEAS

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    2. Papapetrou, Evangelia & Tsalaporta, Pinelopi, 2020. "The impact of population aging in rich countries: What’s the future?," Journal of Policy Modeling, Elsevier, vol. 42(1), pages 77-95.

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    More about this item

    Keywords

    Macroeconomic performance; Collective bargaining; Intersectoral productivity differentials; Unemployment; Labour cost growth; External and fiscal balances;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • F1 - International Economics - - Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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