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What Do Unions Do at the Large Scale? Macro-Economic Evidence from a Panel of OECD Countries

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  • Dimitrios Asteriou
  • Vassilis Monastiriotis

Abstract

This paper investigates the long-run relationship between trade unionism and productivity using a panel data set comprising of 18 OECD economies. Much of the existing evidence on this issue derives from micro-economic studies, with limited attention paid to long-run dynamics and economy-wide effects. Using the mean group and pooled mean group estimation techniques on cross-country panel data, the paper offers support to the “productivity-increasing face of unionism” hypothesis, revealing a positive relationship between trade union density and per worker output.

Suggested Citation

  • Dimitrios Asteriou & Vassilis Monastiriotis, 2004. "What Do Unions Do at the Large Scale? Macro-Economic Evidence from a Panel of OECD Countries," Journal of Applied Economics, Taylor & Francis Journals, vol. 7(1), pages 27-46, May.
    • Handle: RePEc:taf:recsxx:v:7:y:2004:i:1:p:27-46
    DOI: 10.1080/15140326.2004.12040602
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    Cited by:

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    2. Magali Jaoul-Grammare & Isabelle Terraz, 2010. "Syndicalisation et croissance économique : y a-t-il une exception française ?," Working Papers of BETA 2010-25, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Richard Freeman, 2011. "New Roles for Unions and Collective Bargaining Post the Implosion of Wall Street Capitalism," Chapters, in: Susan Hayter (ed.), The Role of Collective Bargaining in the Global Economy, chapter 10, Edward Elgar Publishing.
    4. Aristei, David & Martelli, Duccio, 2014. "Sovereign bond yield spreads and market sentiment and expectations: Empirical evidence from Euro area countries," Journal of Economics and Business, Elsevier, vol. 76(C), pages 55-84.
    5. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
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    7. Lei Ji & Juin‐Jen Chang & Chien‐Yu Huang, 2016. "Unionization, market structure, and economic growth," Southern Economic Journal, John Wiley & Sons, vol. 82(3), pages 935-951, January.
    8. Debasis Mithiya & Simanti Bandyopadhyay & Kumarjit Mandal, 2021. "The Impact of Price and Non-Price Factors on Area Allocated to Oilseeds in India: An Application of ARDL Model," Applied Economics and Finance, Redfame publishing, vol. 8(4), pages 42-55, July.
    9. Trofimov, Ivan D., 2022. "Determinants of the profit rates in the OECD economies: A panel data analysis of the Kalecki's profit equation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 380-397.
    10. Canh Phuc Nguyen & Binh Quang Nguyen & Duyen Thuy Le Tran, 2023. "Over two decades of severe deforestation: an economic perspective of tourism development," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 13(1), pages 83-104, March.
    11. Bhattacharyya, Chandril & Ranjan Gupta, Manash, 2021. "Unionised labour market, environment and endogenous growth," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 29-44.
    12. Cole, Ismail M., 2014. "Short- and long-term growth effects of special interest groups in the U.S. states: A dynamic panel error-correction approach," MPRA Paper 54455, University Library of Munich, Germany, revised 02 Mar 2014.

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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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