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Unions and Collective Bargaining in the Wake of the Great Recession

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Abstract

This paper provides the first definitive estimates of union density in Portugal, 2010-2012, using a unique dataset. The determinants of union density at firm level are first modeled. Next, estimates of the union wage gap are provided for different ranges of union density. Since these estimates fully reflect the reality of an industrial relations system in which collective agreements are extended to nonunion workers and firms, the final issue examined is contract coverage. The pronounced reduction in the number of industry-wide agreements and extension ordinances in recent years has been uncritically equated with a fall in coverage. However, the authors show that the number of workers covered by new and existing agreements has remained largely unaffected by economic crisis. The reduced frequency of new agreements and extensions is instead attributed to downward nominal wage rigidity in deflationary times, rather than (as yet) the expression of a crisis in collective bargaining.

Suggested Citation

  • Pedro Portugal & John T. Addison, 2015. "Unions and Collective Bargaining in the Wake of the Great Recession," Working Papers w201506, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:wpaper:w201506
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    References listed on IDEAS

    as
    1. Paulo Guimarães & Pedro Portugal & Ana Rute Cardoso, 2016. "The sources of the gender wage gap," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    2. Pedro S. Martins, 2021. "30,000 Minimum Wages: The Economic Effects of Collective Bargaining Extensions," British Journal of Industrial Relations, London School of Economics, vol. 59(2), pages 335-369, June.
    3. Anabela Carneiro & Pedro Portugal & Jose Varejão, 2013. "Catastrophic Job Destruction," OECD Social, Employment and Migration Working Papers 152, OECD Publishing.
    4. David S. Lee & Alexandre Mas, 2012. "Long-Run Impacts of Unions on Firms: New Evidence from Financial Markets, 1961--1999," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(1), pages 333-378.
    5. Paulo Guimarães & Pedro Portugal & Anabela Carneiro, 2009. "Real Wages and the Business Cycle: Accounting for Worker and Firm Heterogeneity," Working Papers w200910, Banco de Portugal, Economics and Research Department.
    6. Guimaraes, Paulo & Martins, Fernando & Portugal, Pedro, 2017. "Upward Nominal Wage Rigidity," IZA Discussion Papers 10510, Institute of Labor Economics (IZA).
    7. Anabela Carneiro & Paulo Guimarães & Pedro Portugal, 2012. "Real Wages and the Business Cycle: Accounting for Worker, Firm, and Job Title Heterogeneity," American Economic Journal: Macroeconomics, American Economic Association, vol. 4(2), pages 133-152, April.
    8. John T. Addison & Claus Schnabel (ed.), 2003. "International Handbook of Trade Unions," Books, Edward Elgar Publishing, number 2705.
    9. Ana Rute Cardoso & Pedro Portugal, 2005. "Contractual Wages and the Wage Cushion under Different Bargaining Settings," Journal of Labor Economics, University of Chicago Press, vol. 23(4), pages 875-902, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms

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