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Do unions contribute to creative destruction?

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  • Harald Dale-Olsen

Abstract

We apply a shift-share approach and historical unionisation data from 1918 to study the impact of regional unionisation changes in Norway on regional wage and productivity growth, job-creation and -destruction and social security uptake during the period 2003–2012. As unionisation increases, wages grow. Lay-offs through plant closures and shrinking workplaces increase, causing higher retirement rates, while job creation, plant entry and other social security uptakes are unaffected. Productivity grows, partly by enhanced productivity among surviving and new firms and partly by less productive firms forced to close due to increased labour costs. Thus, unions promote creative destruction.

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  • Harald Dale-Olsen, 2021. "Do unions contribute to creative destruction?," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-23, December.
    • Handle: RePEc:plo:pone00:0261212
    DOI: 10.1371/journal.pone.0261212
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    References listed on IDEAS

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    1. Kostøl, Fredrik B. & Svarstad, Elin, 2023. "Trade Unions and the Process of Technological Change," Labour Economics, Elsevier, vol. 84(C).

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