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When union’s activity matters: The impact of union centralization on economic growth in OECD countries

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  • Phu Nguyen-Van
  • Isabelle Terraz

Abstract

It is nowadays accepted that labor market institutions matter in the economic development. However, empirical studies on unions’ effect are not univocal. Besides traditional indicators of unions’ presence, this paper uses a new indicator to estimate a growth equation using a recent panel dataset on OECD countries. We provide new insight on the impact of unions on the longrun performance of OECD economies. It is shown that a bargaining coverage lower than average and a high degree of union centralization can be harmful to growth. Our study makes the case for new indicators that capture more accurately the bargaining systems.

Suggested Citation

  • Phu Nguyen-Van & Isabelle Terraz, 2017. "When union’s activity matters: The impact of union centralization on economic growth in OECD countries," Working Papers of BETA 2017-38, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2017-38
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    Cited by:

    1. Colin Davis & Ken-ichi Hashimoto & Ken Tabata, 2021. "Unionization, Industry Concentration, and Economic Growth," ISER Discussion Paper 1154, Institute of Social and Economic Research, Osaka University.

    More about this item

    Keywords

    Bargaining indicators; coverage; Economic growth; Union centralization; Wage bargaining.;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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