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The Quality of Industrial Relations and Labour Market Performance

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  • Horst Feldmann

Abstract

. Using data from 19 industrial countries for the period 1985–2002, this paper analyses whether the quality of industrial relations affects unemployment and employment rates. To measure the quality of industrial relations, we use the results of surveys in which senior business executives characterized the industrial relations of their countries. Controlling for the impact of major labour market institutions, the business cycle, the level of economic development, unobserved country effects, as well as endogeneity, we find that cooperative industrial relations are likely to lower unemployment and to increase employment. The effects appear to be large, particularly among young people.

Suggested Citation

  • Horst Feldmann, 2006. "The Quality of Industrial Relations and Labour Market Performance," LABOUR, CEIS, vol. 20(3), pages 559-579, September.
    • Handle: RePEc:bla:labour:v:20:y:2006:i:3:p:559-579
    DOI: 10.1111/j.1467-9914.2006.00353.x
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    References listed on IDEAS

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    1. Olivier Blanchard & Thomas Philippon, 2004. "The Quality of Labor Relations and Unemployment," NBER Working Papers 10590, National Bureau of Economic Research, Inc.
    2. James J. Heckman & Carmen Pagés, 2004. "Law and Employment: Lessons from Latin America and the Caribbean," NBER Books, National Bureau of Economic Research, Inc, number heck04-1, January.
    3. James J. Heckman & Carmen Pagés, 2004. "Introduction to "Law and Employment: Lessons from Latin American and the Caribbean"," NBER Chapters, in: Law and Employment: Lessons from Latin America and the Caribbean, pages 1-108, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Brändle, Tobias, 2024. "Unions and Collective Bargaining: The Influence on Wages, Employment and Firm Survival," GLO Discussion Paper Series 1457, Global Labor Organization (GLO).
    2. Feldmann, Horst, 2008. "The quality of industrial relations and unemployment around the world," Economics Letters, Elsevier, vol. 99(1), pages 200-203, April.
    3. Horst Feldmann, 2008. "Business regulation and labor market performance around the world," Journal of Regulatory Economics, Springer, vol. 33(2), pages 201-235, April.
    4. Jirjahn, Uwe, 2024. "Corporate Globalization and Worker Representation," IZA Discussion Papers 16727, IZA Network @ LISER.
    5. Horst Feldmann, 2009. "The Quality of Industrial Relations and Unemployment in Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 13(1), pages 56-69, February.
    6. Simon STURN, 2013. "Are corporatist labour markets different? Labour market regimes and unemployment in OECD countries," International Labour Review, International Labour Organization, vol. 152(2), pages 237-254, June.
    7. Allen, Matthew M.C. & Allen, Maria L., 2015. "Companies’ Access to Finance, Co-operative Industrial Relations, and Economic Growth: A Comparative Analysis of the States of South Eastern Europe," Research in International Business and Finance, Elsevier, vol. 33(C), pages 167-177.
    8. Simon Sturn, 2011. "Labour market regimes and unemployment in OECD countries," IMK Working Paper 6-2011, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    9. Horst Feldmann, 2009. "The quality of the legal system and labor market performance around the world," European Journal of Law and Economics, Springer, vol. 28(1), pages 39-65, August.

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