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Union Retreat and Regional Economic Performance: the UK in the 1990s

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  • Vassilis Monastiriotis

    (London School of Economics)

Abstract

This paper uses a panel of regional data to investigate the impact that the well-documented decline in trade unionism in the UK had on the economic performance of its regions. The analysis employed here departs from the traditional firm-level and cross-sectional analyses and looks at the economy-wide effects of unionism. Our findings provide evidence in line with theory that predicts unions to increase wages and reduce labour demand, leading to higher unemployment, but they also indicate that unionism is positively related to productivity and incomes, although in all cases the effects are non-linear. We conclude that unionism is not necessarily a burden for the economy, so long that the beneficial wage/productivity effects overbalance the negative effects on employment.

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File URL: http://128.118.178.162/eps/urb/papers/0302/0302006.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Urban/Regional with number 0302006.

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Date of creation: 17 Feb 2003
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Handle: RePEc:wpa:wuwpur:0302006

Note: Type of Document - pdf; prepared on IBM PC; to print on HP;
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Web page: http://128.118.178.162

Related research

Keywords: trade unions; regional economic performance; panel data;

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References

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  15. Andrea Bassanini & Ekkehard Ernst, 2002. "Labour Market Institutions, Product Market Regulation, and Innovation: Cross-Country Evidence," OECD Economics Department Working Papers 316, OECD Publishing.
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Cited by:
  1. Philippe Martin, 2005. "The geography of inequalities in Europe," Sciences Po publications info:hdl:2441/9283, Sciences Po.

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