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Unions and Employment in Uruguay

  • Adriana Cassoni
  • Steven G. Allen
  • Gastón J. Labadie

This study examines the impact of unions on wages and employment using data from Uruguay in a period when unions were banned (1973-1984), then legalized with tripartite bargaining (1984-1991) followed by industry-wide or firm-specific bargaining (1992-1997). The paper begins with background on the economy, the labor market, and collective bargaining in Uruguay (Section II), followed by a brief theoretical overview on unions and labor demand (Section III) and a description of the data (Section IV). The labor demand results (Section V) indicate a structural shift in the labor demand function occurred at about the same time as the return of collective bargaining.

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Paper provided by Inter-American Development Bank in its series IDB Publications (Working Papers) with number 43118.

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Date of creation: May 2000
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Handle: RePEc:idb:brikps:43118
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  1. Rama, Martin, 1997. "Organized Labor and the Political Economy of Product Market Distortions," World Bank Economic Review, World Bank Group, vol. 11(2), pages 327-55, May.
  2. Burgess, Simon M & Dolado, Juan J, 1989. "Intertemporal Rules with Variable Speed of Adjustment: An Application to U.K. Manufacturing Employment," Economic Journal, Royal Economic Society, vol. 99(396), pages 347-65, June.
  3. Philippe Aghion & Gilles Saint-Paul, 1993. "Uncovering Some Causal Relationships between Productivity Growth and the Structure of Economic Fluctuations: A Tentative Survey," NBER Working Papers 4603, National Bureau of Economic Research, Inc.
  4. Steven G. Allen, 1985. "Union Work Rules and Efficiency in the Building Trades," NBER Working Papers 1733, National Bureau of Economic Research, Inc.
  5. Steven G Allen & Adriana Cassoni & Gastón J Labadie, 1996. "Wages and Employment After Reunionization in Uruguay," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 33(99), pages 277-294.
  6. Hamermesh, Daniel S. & Pfann, Gerard Antonie, 1996. "Adjustment Costs in Factor Demand," CEPR Discussion Papers 1371, C.E.P.R. Discussion Papers.
  7. Steven Allen & Adriana Cassoni & Gastón J. Labadie, 1994. "Labor market flexibility and unemployment in Chile and Uruguay," Estudios de Economia, University of Chile, Department of Economics, vol. 21(esp Year ), pages 127-146, November.
  8. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
  9. Adriana Cassoni & Zuleika Ferré, 1997. "Costos no salariales en el mercado de trabajo del Uruguay," Documentos de Trabajo (working papers) 0897, Department of Economics - dECON.
  10. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers 185, Massachusetts Institute of Technology (MIT), Department of Economics.
  11. Boal, William M & Pencavel, John, 1994. "The Effects of Labor Unions on Employment, Wages, and Days of Operation: Coal Mining in West Virginia," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 267-98, February.
  12. Machin, Stephen J & Wadhwani, Sushil, 1991. "The Effects of Unions on Organisational Change and Employment," Economic Journal, Royal Economic Society, vol. 101(407), pages 835-54, July.
  13. Carruth, Alan A & Oswald, Andrew J, 1987. "On Union Preferences and Labour Market Models: Insiders and Outsi ders," Economic Journal, Royal Economic Society, vol. 97(386), pages 431-45, June.
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