IDEAS home Printed from https://ideas.repec.org/a/bla/polstu/v56y2008i4p830-856.html

Labor Market Deregulation and Industrial Conflict in New Democracies: A Cross‐National Analysis

Author

Listed:
  • José Alemán

Abstract

This article studies the effect of recent labor market reforms on industrial relations in new democracies (1994–2003). The literature on labor politics posits two channels through which labor market deregulation may relate to industrial conflict. Wage deregulation may lower wage costs, increasing industrial conflict. Employment deregulation, however, can reduce the ability of workers to act collectively. Using methods uniquely suited for panel data analysis, the study reveals a number of important findings. First, whereas labor quiescence went hand in hand with relatively modest increases in earnings in a number of established democracies, modest wage increases are generally linked with more labor militancy in new democracies. Higher wage and employment regulation minimize wage reductions, lowering the incidence of strikes. Finally, wage regulation has the largest effect on aggregate wages and consequently on the incidence of strikes and lockouts.

Suggested Citation

  • José Alemán, 2008. "Labor Market Deregulation and Industrial Conflict in New Democracies: A Cross‐National Analysis," Political Studies, Political Studies Association, vol. 56(4), pages 830-856, December.
    • Handle: RePEc:bla:polstu:v:56:y:2008:i:4:p:830-856
    DOI: 10.1111/j.1467-9248.2007.00707.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9248.2007.00707.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9248.2007.00707.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Brady, 2003. "The Politics of Poverty: Left Political Institutions, the Welfare State and Poverty," LIS Working papers 352, LIS Cross-National Data Center in Luxembourg.
    2. Nelson, Joan M, 1991. "Organized Labor, Politics, and Labor Market Flexibility in Developing Countries," The World Bank Research Observer, World Bank, vol. 6(1), pages 37-56, January.
    3. Western, Bruce & Jackman, Simon, 1994. "Bayesian Inference for Comparative Research," American Political Science Review, Cambridge University Press, vol. 88(2), pages 412-423, June.
    4. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    5. Paul G. Buchanan & Kate Nicholls, 2003. "New Zealand and Uruguay," Palgrave Macmillan Books, in: Labour Politics in Small Open Democracies, chapter 3, pages 89-154, Palgrave Macmillan.
    6. Soskice, David, 1990. "Wage Determination: The Changing Role of Institutions in Advanced Industrialized Countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 6(4), pages 36-61, Winter.
    7. Pereira,Luiz Carlos Bresser & Maravall,José María & Przeworski,Adam, 1993. "Economic Reforms in New Democracies," Cambridge Books, Cambridge University Press, number 9780521438452, August.
    8. 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.
    9. Paul G. Buchanan & Kate Nicholls, 2003. "Labour Politics in Small Open Democracies," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-4039-3740-7, September.
    10. Keefer, Philip & Stasavage, David, 2003. "The Limits of Delegation: Veto Players, Central Bank Independence, and the Credibility of Monetary Policy," American Political Science Review, Cambridge University Press, vol. 97(3), pages 407-423, August.
    11. Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October.
    12. 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.
    13. Korpi, Walter, 1974. "Conflict, Power and Relative Deprivation," American Political Science Review, Cambridge University Press, vol. 68(4), pages 1569-1578, December.
    14. Rudra, Nita, 2002. "Globalization and the Decline of the Welfare State in Less-Developed Countries," International Organization, Cambridge University Press, vol. 56(2), pages 411-445, April.
    15. Paul G. Buchanan & Kate Nicholls, 2003. "Australia and Chile," Palgrave Macmillan Books, in: Labour Politics in Small Open Democracies, chapter 2, pages 25-88, Palgrave Macmillan.
    16. MartÌn Rama, 2003. "Globalization and the Labor Market," The World Bank Research Observer, World Bank, vol. 18(2), pages 159-186.
    17. Sandrine CAZES & Alena NESPOROVA, 2001. "Labour market flexibility in the transition countries: How much is too much?," International Labour Review, International Labour Organization, vol. 140(3), pages 293-325, September.
    18. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David KUCERA & Leanne RONCOLATO, 2008. "Informal employment: Two contested policy issues," International Labour Review, International Labour Organization, vol. 147(4), pages 321-348, December.
    2. Brady, David & Beckfield, Jason & Seeleib-Kaiser, Martin, 2004. "Economic Globalization and the Welfare State in Affluent Democracies, 1975-1998," Working papers of the ZeS 12/2004, University of Bremen, Centre for Social Policy Research (ZeS).
    3. Kaplan, David S., 2009. "Job creation and labor reform in Latin America," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 91-105, March.
    4. Reyes Aterido & Mary Hallward-Driemeier & Carmen Pagés, 2011. "Big Constraints to Small Firms' Growth? Business Environment and Employment Growth across Firms," Economic Development and Cultural Change, University of Chicago Press, vol. 59(3), pages 609-647.
    5. Antonio Rodriguez Gil & Douglas Alencar, 2026. "Hysteresis in LATAM. Assessing the long-term impact of monetary policy and LMI on unemployment during the 2010s," Working Papers PKWP2615, Post Keynesian Economics Society (PKES).
    6. Kevin Pineda‐Hernández & François Rycx & Mélanie Volral, 2022. "How collective bargaining shapes poverty: New evidence for developed countries," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 895-928, December.
    7. Viollaz, Mariana, 2016. "Enforcement of Labor Market Regulations: Heterogeneous Compliance and Adjustment across Gender," MPRA Paper 72000, University Library of Munich, Germany.
    8. Andinet Woldemichael & Margaret Joldowski, 2019. "Working Paper 328 - The Cost of Inaction: Obstacles and Lost Jobs in Africa," Working Paper Series 2454, African Development Bank.
    9. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    10. Magdalena M. Ulceluse & Martin Kahanec, 2017. "Does employment protection legislation promote immigrant self-employment?," Discussion Papers 46, Central European Labour Studies Institute (CELSI).
    11. A. Kerem Co?ar & Nezih Guner & James Tybout, 2016. "Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy," American Economic Review, American Economic Association, vol. 106(3), pages 625-663, March.
    12. Marina Bassi & Matías Busso & Sergio Urzúa & Jaime Vargas, 2012. "Disconnected: Skills, Education, and Employment in Latin America," IDB Publications (Books), Inter-American Development Bank, number 79504, February.
    13. Echavarría-Soto, Juan José & López, Enrique & Ocampo, Sergio & Rodríguez-Niño, Norberto, 2012. "Choques, instituciones laborales y desempleo en Colombia," Chapters, in: Arango-Thomas, Luis Eduardo & Hamann-Salcedo, Franz Alonso (ed.), El mercado de trabajo en Colombia: hechos, tendencias e instituciones, chapter 18, pages 753-794, Banco de la Republica de Colombia.
    14. Welander, Anna & Lyttkens, Carl Hampus & Nilsson, Therese, 2014. "Globalization and Child Health in Developing Countries: The Role of Democracy," Working Paper Series 1016, Research Institute of Industrial Economics.
    15. Bodea, Cristina & Hicks, Raymond, 2015. "Price Stability and Central Bank Independence: Discipline, Credibility, and Democratic Institutions," International Organization, Cambridge University Press, vol. 69(1), pages 35-61, January.
    16. Stephanie Meinhard & Niklas Potrafke, 2012. "The Globalization–Welfare State Nexus Reconsidered," Review of International Economics, Wiley Blackwell, vol. 20(2), pages 271-287, May.
    17. Kevin Williams, 2021. "Does national income mediate the relationship between trade and government size?," Empirical Economics, Springer, vol. 61(6), pages 3029-3057, December.
    18. Marco Leonardi & Giovanni Pica, 2013. "Who Pays for it? The Heterogeneous Wage Effects of Employment Protection Legislation," Economic Journal, Royal Economic Society, vol. 123(12), pages 1236-1278, December.
    19. Björn Kauder & Niklas Potrafke, 2015. "Globalization and social justice in OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(2), pages 353-376, May.
    20. Angel Melguizo, 2015. "Pensions, informality, and the emerging middle class," World of Labour, LISER, pages 169-169, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:polstu:v:56:y:2008:i:4:p:830-856. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0032-3217 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.