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Has Globalization Affected Collective Bargaining? An Empirical Test, 1980-2009

  • Zohal Hessami


    (Department of Economics, University of Konstanz, Germany)

  • Thushyanthan Baskaran


    (Department of Economics, University of Göttingen, Germany)

Theoretical models predict that globalization changes the nature of collective bargaining. Yet, the extant empirical evidence is inconclusive. We investigate the influence of globalization on three aspects of collective bargaining (degree of decentralization, union density, extent of government intervention) in industrialized and transition countries. Our innovations over the existing empirical literature are (i) the reliance on a more comprehensive dataset (44 countries from 1980 to 2009) and (ii) the use of dynamic panel data estimators. We find that economic globalization has depressed unionization rates, while the extent of decentralization and government intervention in collective bargaining have not been affected.

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Paper provided by Department of Economics, University of Konstanz in its series Working Paper Series of the Department of Economics, University of Konstanz with number 2013-02.

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Length: 27 pages
Date of creation: 26 Feb 2013
Date of revision:
Handle: RePEc:knz:dpteco:1302
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