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Unions and Employment in Uruguay

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  • Adriana Cassoni
  • Steven G. Allen
  • Gastón J. Labadie

Abstract

This study examines the impact of unions on wages and employment using data from Uruguay in a period when unions were banned (1973-1984), then legalized with tripartite bargaining (1984-1991) followed by industry-wide or firm-specific bargaining (1992-1997). The paper begins with background on the economy, the labor market, and collective bargaining in Uruguay (Section II), followed by a brief theoretical overview on unions and labor demand (Section III) and a description of the data (Section IV). The labor demand results (Section V) indicate a structural shift in the labor demand function occurred at about the same time as the return of collective bargaining.

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Bibliographic Info

Paper provided by Inter-American Development Bank in its series IDB Publications with number 43118.

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Date of creation: May 2000
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Handle: RePEc:idb:brikps:43118

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Keywords: Industrial Policy; Labor Policy; Labor Relations; manufacturing industries; labor market; trade unions; labor supply; labor demand;

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References

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  1. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 185, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. Rama, Martin, 1997. "Organized Labor and the Political Economy of Product Market Distortions," World Bank Economic Review, World Bank Group, World Bank Group, vol. 11(2), pages 327-55, May.
  3. Philippe Aghion & Gilles Saint-Paul, 1998. "Uncovering Some Causal Relationships Between Productivity Growth and the Structure of Economic Fluctuations: A Tentative Survey," LABOUR, CEIS, CEIS, vol. 12(2), pages 279-303, 07.
  4. Hamermesh, Daniel S & Pfann, Gerard Antonie, 1996. "Adjustment Costs in Factor Demand," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1371, C.E.P.R. Discussion Papers.
  5. Machin, Stephen J & Wadhwani, Sushil, 1991. "The Effects of Unions on Organisational Change and Employment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 101(407), pages 835-54, July.
  6. Steven Allen & Adriana Cassoni & Gastón J. Labadie, 1994. "Labor market flexibility and unemployment in Chile and Uruguay," Estudios de Economia, University of Chile, Department of Economics, University of Chile, Department of Economics, vol. 21(esp Year ), pages 127-146, November.
  7. Adriana Cassoni & Zuleika Ferré, 1997. "Costos no salariales en el mercado de trabajo del Uruguay," Documentos de Trabajo (working papers), Department of Economics - dECON 0897, Department of Economics - dECON.
  8. Burgess, Simon M & Dolado, Juan J, 1989. "Intertemporal Rules with Variable Speed of Adjustment: An Application to U.K. Manufacturing Employment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 99(396), pages 347-65, June.
  9. Allen, Steven G, 1986. "Union Work Rules and Efficiency in the Building Trades," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 4(2), pages 212-42, April.
  10. Steven G Allen & Adriana Cassoni & Gastón J Labadie, 1996. "Wages and Employment After Reunionization in Uruguay," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 33(99), pages 277-294.
  11. Boal, William M & Pencavel, John, 1994. "The Effects of Labor Unions on Employment, Wages, and Days of Operation: Coal Mining in West Virginia," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 109(1), pages 267-98, February.
  12. Carruth, Alan A & Oswald, Andrew J, 1987. "On Union Preferences and Labour Market Models: Insiders and Outsi ders," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 97(386), pages 431-45, June.
  13. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 12(2-3), pages 231-254.
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Cited by:
  1. Mariano Tommasi & Silvana Tenreyro, 2001. "Comments on Dani Rodrik's "Why Is There So Much Economic Insecurity in Latin America?"," Working Papers, Universidad de San Andres, Departamento de Economia 28, Universidad de San Andres, Departamento de Economia, revised Mar 2001.
  2. Richard B. Freeman, 2009. "Labor Regulations, Unions, and Social Protection in Developing Countries: Market distortions or Efficient Institutions?," NBER Working Papers, National Bureau of Economic Research, Inc 14789, National Bureau of Economic Research, Inc.
  3. Fernando Rios-Avila, 2014. "Unions and Economic Performance in Developing Countries: Case Studies from Latin America," Economics Working Paper Archive, Levy Economics Institute wp_787, Levy Economics Institute.
  4. Jaime Saavedra-Chanduví & Máximo Torero, 2002. "Union Density Changes and Union Effects On Firm Performance in Peru," Research Department Publications, Inter-American Development Bank, Research Department 3158, Inter-American Development Bank, Research Department.
  5. Freeman, Richard B., 2010. "Labor Regulations, Unions, and Social Protection in Developing Countries," Handbook of Development Economics, Elsevier, Elsevier.
  6. Maribel Castillo Caicedo & Geovanny Castro Aristizabal & Diana Marcela Escandón Barbosa, 2010. "Demanda laboral de profesionales en ciencias económicas, administrativas e ingeniería en Cali 2009: ¿van de la mano el capital humano y la señalización?," Investigaciones de Economía de la Educación volume 5, Asociación de Economía de la Educación, in: María Jesús Mancebón-Torrubia & Domingo P. Ximénez-de-Embún & José María Gómez-Sancho & Greg (ed.), Investigaciones de Economía de la Educación 5, edition 1, volume 5, chapter 42, pages 825-846 Asociación de Economía de la Educación.
  7. Lichter, Andreas & Peichl, Andreas & Siegloch, Sebastian, 2014. "The own-wage elasticity of labor demand: A meta-regression analysis," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 14-016, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Mauricio Zunino, 2012. "Impactos de la reinstauración de los Consejos de Salarios sobre la distribución salarial en Uruguay," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 129-167, January-D.
  9. Adriana Cassoni, 1999. "The wage elasticity of labour demand in the Uruguayan manufacturing sector after re-unionisation: new results," Documentos de Trabajo (working papers), Department of Economics - dECON 1499, Department of Economics - dECON.
  10. A. Cassoni & G. Fachola & G. Labadie, 2001. "The impact of unions on the economic performance of firms," Documentos de Trabajo (working papers), Department of Economics - dECON 1501, Department of Economics - dECON.
  11. Fajnzylber, Pablo & Maloney, William F., 2000. "Labor demand andtrade reform in Latin America," Policy Research Working Paper Series, The World Bank 2491, The World Bank.
  12. Carlos Arango Arango & Angela Milena Rojas, . "Demanda Laboral en el Sector Manufacturero COlombiano: 1977-1999," Borradores de Economia, Banco de la Republica de Colombia 247, Banco de la Republica de Colombia.
  13. Adriana Cassoni & Gastón J. Labadie & Gabriela Fachola, 2002. "The Economic Effects of Unions in Latin America: Their Impact on Wages and the Economic Performance of Firms in Uruguay," IDB Publications, Inter-American Development Bank 43358, Inter-American Development Bank.
  14. Giuseppe Bertola, 2005. "Distribution, Efficiency, and Labor Market Regulation: in Theory, in OECD Countries, and in Latin America," Central Banking, Analysis, and Economic Policies Book Series, Central Bank of Chile, in: Jorge Restrepo & Andrea Tokman R. & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Edi (ed.), Labor Markets and Institutions, edition 1, volume 8, chapter 2, pages 017-060 Central Bank of Chile.
  15. Carlos A. Arango & Ángela Milena Rojas, 2003. "Demanda laboral y reforma comercial en el sector manufacturero colombiano: 1977-1999," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, BANCO DE LA REPÚBLICA - ESPE.
  16. Jairo Guillermo Isaza Castro & Carlos Arturo Meza Carvajalino, 2004. "La demanda de trabajo:Aspectos teóricos y evidencia empírica para Colombia," SERIE DE DOCUMENTOS EN ECONOMÍA Y VIOLENCIA, CENTRO DE INVESTIGACIONES EN VIOLENCIA, INSTITUCIONES Y DESARROLLO ECONÓMICO (VIDE) 002965, CENTRO DE INVESTIGACIONES EN VIOLENCIA, INSTITUCIONES Y DESARROLLO ECONÓMICO (VIDE).
  17. Daniel Miles & Máximo Rossi, 2001. "Wage Inequality in Developing Countries: Market Forces or Government Intervention," Documentos de Trabajo (working papers), Department of Economics - dECON 1001, Department of Economics - dECON.
  18. Daniel S. Hamermesh, 2004. "Labor Demand in Latin America and the Caribbean. What Does It Tell Us?," NBER Chapters, National Bureau of Economic Research, Inc, in: Law and Employment: Lessons from Latin America and the Caribbean, pages 553-562 National Bureau of Economic Research, Inc.

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