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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

    ()

    (University of South Carolina, Durham University, GEMF/University of Coimbra, and IZA)

Abstract

This paper addresses the design of the machinery of collective bargaining from the perspective of the needs of microeconomic and macroeconomic flexibility. In the former context, greater attention is given over to enterprise flexibility than external adjustment. In the latter context, close attention is paid to changes in collective bargaining along the dimensions of bargaining coverage, structure, and coordination, drawing on Visser’s (2013) welcome update of national collective bargaining institutions; on the basis of which, and recent theoretical developments, specific support is adduced for the German, contemporary Scandinavian, and British models. The role of trust in securing micro and macro flexibility also receives attention, leading to the suggestion that the polder or Dutch model might also be expected to populate the firmament of favored collective bargaining arrangements. The paper concludes with a discussion of the policy implications raised by two developments that have been linked to the retreat of collective bargaining, namely heightened earnings dispersion and a shortfall in worker voice.

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Paper provided by GEMF, Faculty of Economics, University of Coimbra in its series GEMF Working Papers with number 2016-01.

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Length: 78 pages
Date of creation: Jan 2016
Handle: RePEc:gmf:wpaper:2016-01.
Note: A paper prepared for the Research Department of the International Monetary Fund, 2015.
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Keywords: micro/macro flexibility; collective bargaining; bargaining coverage/structure/coordination; inequality; growth; stabilization; decentralization; pacts; social pacts; trust; unemployment; voice.;

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Find related papers by 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
  • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
  • P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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Cited by:

  1. Addison, John T. & Teixeira, Paulino, 2017. "Workplace Employee Representation and Industrial Relations Performance: New Evidence from the 2013 European Company Survey," IZA Discussion Papers 10899, Institute for the Study of Labor (IZA).
  2. Burdín, Gabriel & Pérotin, Virginie, 2016. "Employee Representation and Flexible Working Time," IZA Discussion Papers 10437, Institute for the Study of Labor (IZA).
  3. Addison, John T. & Teixeira, Paulino, 2017. "Strikes, Employee Workplace Representation, Unionism, and Trust: Evidence from Cross-Country Data," IZA Discussion Papers 10575, Institute for the Study of Labor (IZA).

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