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What Do Unions Do at the Large Scale? Macro-Economic Evidence from a Panel of OECD Countries

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  • Dimitrios Asteriou
  • Vassilis Monastiriotis

Abstract

This paper investigates the long-run relationship between trade unionism and productivity using a panel data set comprising of 18 OECD economies. Much of the existing evidence on this issue derives from micro-economic studies, with limited attention paid to long-run dynamics and economy-wide effects. Using the mean group and pooled mean group estimation techniques on cross-country panel data, the paper offers support to the “productivity-increasing face of unionism” hypothesis, revealing a positive relationship between trade union density and per worker output.

Suggested Citation

  • Dimitrios Asteriou & Vassilis Monastiriotis, 2004. "What Do Unions Do at the Large Scale? Macro-Economic Evidence from a Panel of OECD Countries," Journal of Applied Economics, Taylor & Francis Journals, vol. 7(1), pages 27-46, May.
    • Handle: RePEc:taf:recsxx:v:7:y:2004:i:1:p:27-46
    DOI: 10.1080/15140326.2004.12040602
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    Cited by:

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    2. Aristei, David & Martelli, Duccio, 2014. "Sovereign bond yield spreads and market sentiment and expectations: Empirical evidence from Euro area countries," Journal of Economics and Business, Elsevier, vol. 76(C), pages 55-84.
    3. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
    4. Bhattacharyya, Chandril & Ranjan Gupta, Manash, 2021. "Unionised labour market, environment and endogenous growth," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 29-44.
    5. Tochukwu Timothy Okoli, 2020. "Is the Relationship between Financial Technology and Credit Risk Monotonic? Evidence from the BRICS Economies," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(9), pages 999-1011, September.
    6. Lei Ji & Juin‐Jen Chang & Chien‐Yu Huang, 2016. "Unionization, market structure, and economic growth," Southern Economic Journal, John Wiley & Sons, vol. 82(3), pages 935-951, January.
    7. Yousef Makhlouf & Christopher Lalley, 2023. "Education Expansion, Income Inequality and Structural Transformation: Evidence From OECD Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 255-281, September.
    8. Debasis Mithiya & Simanti Bandyopadhyay & Kumarjit Mandal, 2021. "The Impact of Price and Non-Price Factors on Area Allocated to Oilseeds in India: An Application of ARDL Model," Applied Economics and Finance, Redfame publishing, vol. 8(4), pages 42-55, July.
    9. Cole, Ismail M., 2014. "Short- and long-term growth effects of special interest groups in the U.S. states: A dynamic panel error-correction approach," MPRA Paper 54455, University Library of Munich, Germany, revised 02 Mar 2014.
    10. Hyeladi Stanley Dibal & Habila Abel Haruna & Chinyere C. Onyejiaku & Ogbole Friday Ogbole & Josaphat Uchechukwu J. Onwumere, 2024. "Pension Fund Investments and Capital Market Development in Nigeria: The Moderating Role of Inflation," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 16(2), pages 248-269, May.
    11. Magali Jaoul-Grammare & Isabelle Terraz, 2010. "Syndicalisation et croissance économique : y a-t-il une exception française ?," Working Papers of BETA 2010-25, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    12. Trofimov, Ivan D., 2022. "Determinants of the profit rates in the OECD economies: A panel data analysis of the Kalecki's profit equation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 380-397.
    13. Canh Phuc Nguyen & Binh Quang Nguyen & Duyen Thuy Le Tran, 2023. "Over two decades of severe deforestation: an economic perspective of tourism development," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 13(1), pages 83-104, March.
    14. Guy Vernon & Mark Rogers, 2013. "Where Do Unions Add Value? Predominant Organizing Principle, Union Strength and Manufacturing Productivity Growth in the OECD," British Journal of Industrial Relations, London School of Economics, vol. 51(1), pages 1-27, March.

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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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