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Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies

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  • John T. Addison

    (Moore School of Business University of South Carolina
    Durham University Business School)

Abstract

This paper addresses the design of the machinery of collective bargaining from the perspective of microeconomic and macroeconomic flexibility. In the former context, somewhat greater attention is given over to enterprise flexibility than external adjustment. In the latter context, close attention is also paid to changes in collective bargaining along the dimensions of bargaining coverage, structure, and coordination. Support is adduced for the German, contemporary Scandinavian, and British models. The role of trust in securing micro and macro flexibility also receives attention, suggesting that the polder or Dutch model might also be expected to populate the firmament of fit-for-purpose collective bargaining arrangements. JEL Classification: Microeconomics/Institutions (D02), Institutions and the Macroeconomy (E02), Employment/Unemployment/Wages (E24), Income Distribution (E25), Macroeconomic Policy Objectives (E61), Labor Economics Policies (JO8) Trades Unions (J51), Collective Bargaining (J52), Labor-Management Relations (J53), Public Policy (J58), Comparative Analysis of Economic Systems (P51)

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  • John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
  • Handle: RePEc:spr:izalpo:v:5:y:2016:i:1:d:10.1186_s40173-016-0075-8
    DOI: 10.1186/s40173-016-0075-8
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    2. Addison John T. & Teixeira Paulino, 2019. "Workplace Employee Representation and Industrial Relations Performance: New Evidence from the 2013 European Company Survey," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(1), pages 111-154, January.
    3. Burdin, Gabriel & Pérotin, Virginie, 2019. "Employee representation and flexible working time," Labour Economics, Elsevier, vol. 61(C).
    4. Dütsch Matthias & Himmelreicher Ralf, 2020. "Characteristics Contributing to Low- and Minimum-Wage Labour in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(2-3), pages 161-200, April.
    5. Alexander Hijzen & Pedro S. Martins & Jante Parlevliet, 2017. "Collective Bargaining Through the Magnifying Glass: A Comparison Between the Netherlands and Portugal," IMF Working Papers 2017/275, International Monetary Fund.
    6. John T. Addison & Pedro Portugal & Hugo Vilares, 2017. "Unions and Collective Bargaining in the Wake of the Great Recession: Evidence from Portugal," British Journal of Industrial Relations, London School of Economics, vol. 55(3), pages 551-576, September.
    7. Goerke, Laszlo & Pannenberg, Markus, 2021. "Wage Determination in the Shadow of the Law: The Case of Works Councilors in Germany," GLO Discussion Paper Series 789, Global Labor Organization (GLO).
    8. Thommen, Yann, 2022. "Reforms of collective bargaining institutions in European Union countries: Bad timing, bad outcomes?," European Journal of Political Economy, Elsevier, vol. 71(C).
    9. Cardullo, Gabriele & Conti, Maurizio & Sulis, Giovanni, 2020. "A model of unions, two-tier bargaining and capital investment," Labour Economics, Elsevier, vol. 67(C).
    10. Romain Duval & Davide Furceri, 2018. "The Effects of Labor and Product Market Reforms: The Role of Macroeconomic Conditions and Policies," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 66(1), pages 31-69, March.
    11. Gerhard Fenz & Christian Ragacs & Alfred Stiglbauer, 2019. "Aggregate wage developments in Austria since the introduction of the euro," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q-1-Q2/19, pages 41-56.
    12. Ramos, Raul & Sanromá, Esteban & Simón, Hipólito, 2022. "Collective bargaining levels, employment and wage inequality in Spain," Journal of Policy Modeling, Elsevier, vol. 44(2), pages 375-395.
    13. Addison, John T. & Teixeira, Paulino, 2017. "Strikes, Employee Workplace Representation, Unionism, and Trust: Evidence from Cross-Country Data," IZA Discussion Papers 10575, Institute of Labor Economics (IZA).

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    4. Laroche, Patrice, 2020. "Unions, Collective Bargaining and Firm Performance," GLO Discussion Paper Series 728, Global Labor Organization (GLO).
    5. Fernando Rios-Avila, 2017. "Unions and Economic Performance in Developing Countries: Case Studies from Latin America," Revista Ecos de Economía, Universidad EAFIT, vol. 21(44), pages 4-36, June.
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    More about this item

    Keywords

    Bargaining coverage/structure/coordination; Collective bargaining; Decentralization; Growth; Inequality; Micro/macro flexibility; Pacts; Social pacts; Stabilization; Trust; Unemployment; Voice;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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