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A Causality Analysis of Economic Growth and Union Density in European Countries

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  • Magali Jaoul-Grammare

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Isabelle Terraz

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, we analyse the relationship between union density and economic growth using a Granger causality analysis and shocks analysis with vector autoregression model. We find that the Granger causality goes from the growth rate to the unionization rate in four of the 11 European countries under study. France bucks the trend: it is the only country in which union density influences economic growth, moreover in a positive way.

Suggested Citation

  • Magali Jaoul-Grammare & Isabelle Terraz, 2013. "A Causality Analysis of Economic Growth and Union Density in European Countries," Post-Print hal-01753171, HAL.
    • Handle: RePEc:hal:journl:hal-01753171
    DOI: 10.1111/labr.12021
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    Cited by:

    1. Bhattacharyya, Chandril & Gupta, Manash Ranjan, 2020. "Union, Efficiency of Labour and Endogenous Growth," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 61(2), pages 170-202, December.
    2. Chandril Bhattacharyya & Manash Ranjan Gupta, 2015. "Unionized Labour Market, Unemployment Allowances, Productive Public Expenditure And Endogenous Growth," Metroeconomica, Wiley Blackwell, vol. 66(3), pages 397-425, July.
    3. Olivier Guillot & Magali Jaoul-Grammare & Isabelle Terraz, 2019. "Union Membership in France: An Empirical Study," Working Papers of BETA 2019-04, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    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.

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