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Measuring Union Bargaining Power In The Estonian Public Sector

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  • Anne Lauringson
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    Abstract

    This paper analyzes the impact of trade unions on remuneration in the Estonian public sector. In this paper, union bargaining power is investigated separately in healthcare, education and culture and the public service using a case study approach. The method elaborated by the author uses documentation from branch level negotiations in the period 2001–2005. The analysis reveals that unions do have an impact on remuneration in the Estonian public sector. The influence is greater in healthcare, less in education and culture, and ambiguous in the public service where social dialogue does not really work. The most important factors of union influence turn out to be the political and legal environment (the right to strike), funding schemes and the bargaining structure (the existence and stability of an employers’ union, the number of wage levels bargained, the clarity with which parties represent their positions).

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    File URL: http://www.mtk.ut.ee/sites/default/files/mtk/RePEc/mtk/febpdf/febawb72.pdf
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    Bibliographic Info

    Paper provided by Faculty of Economics and Business Administration, University of Tartu (Estonia) in its series University of Tartu - Faculty of Economics and Business Administration Working Paper Series with number 72.

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    Length: 39 pages
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:mtk:febawb:72

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    Related research

    Keywords: trade unions; bargaining power; public sector; CEE countries; Estonia;

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    1. Ichniowski, Casey & Freeman, Richard B & Lauer, Harrison, 1989. "Collective Bargaining Laws, Threat Effects, and the Determination of Police Compensation," Journal of Labor Economics, University of Chicago Press, vol. 7(2), pages 191-209, April.
    2. Dobbelaere, Sabien, 2004. "Ownership, firm size and rent sharing in Bulgaria," Labour Economics, Elsevier, vol. 11(2), pages 165-189, April.
    3. Belot, Michèle & van Ours, Jan C, 2000. "Does the Recent Success of some OECD Countries in Lowering their Unemployment Rates lie in the Clever Design of their Labour Market Reforms?," CEPR Discussion Papers 2492, C.E.P.R. Discussion Papers.
    4. Joseph Tracy, 1988. "Comparisons Between Public and Private Sector Union Wage Differentials: Does the Legal Environment Matter?," NBER Working Papers 2755, National Bureau of Economic Research, Inc.
    5. Lorenzo Forni & Raffaela Giordano, 2003. "Employment in the Public Sector," CESifo Working Paper Series 1085, CESifo Group Munich.
    6. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521464673, October.
    7. Jeffrey S. Zax & Casey Ichniowski, 1990. "Bargaining laws and unionization in the local public sector," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 43(4), pages 447-462, April.
    8. Ellen Brock & Sabien Dobbelaere, 2006. "Has International Trade Affected Workers’ Bargaining Power?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(2), pages 233-266, July.
    9. Torberg Falch & Bjarne Strøm, 2005. "Wage Bargaining and Political Strength in the Public Sector," CESifo Working Paper Series 1629, CESifo Group Munich.
    10. Valletta, Robert G, 1993. "Union Effects on Municipal Employment and Wages: A Longitudinal Approach," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 545-74, July.
    11. Raul Eamets & Epp Kalaste, 2004. "The Lack of Wage Setting Power of Estonian Trade Unions?," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 5(1), pages 44-60, December.
    12. Paul F. Gerhart, 1976. "Determinants of bargaining outcomes in local government labor negotiations," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 29(3), pages 331-351, April.
    13. Currie, Janet & McConnell, Sheena, 1991. "Collective Bargaining in the Public Sector: The Effect of Legal Structure on Dispute Costs and Wages," American Economic Review, American Economic Association, vol. 81(4), pages 693-718, September.
    14. Robert G. Valletta, 1989. "The effect of unionism on municipal expenditures and revenues," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 42(3), pages 430-442, April.
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