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Is union influence on wage formation waning worldwide?

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  • Wolfgang Ochel

Abstract

The coverage of collectively bargained wage agreements is wide in Scandinavia and continental European countries. In the mid-1990s coverage in Germany was 92%. But there are major differences between country groups. In the Scandinavian countries the coverage of the contract agreements is about equal to the level of unionisation. In continental Europe, including southern Europe, the high coverage of wage agreements is not attributable to a correspondingly strong position of the unions in the labour force. It depends instead on employers also paying non-union members of the basis of the negotiated agreements or on the fact that wage agreements are declared to be generally binding.

Suggested Citation

  • Wolfgang Ochel, 2001. "Is union influence on wage formation waning worldwide?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(05), pages 44-46, October.
    • Handle: RePEc:ces:ifosdt:v:54:y:2001:i:05:p:44-46
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    References listed on IDEAS

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    1. Nickell, S. & Vainiomaki, J. & Wadhwani, S., 1991. "Wages, Unions, Insiders and Product Market Power," Economics Series Working Papers 99131, University of Oxford, Department of Economics.
    2. David Blanchflower, 1996. "The Role and Influence of Trade Unions in the OECD," CEP Discussion Papers dp0310, Centre for Economic Performance, LSE.
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    More about this item

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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