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

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Listed:
  • Zohal Hessami

    () (Department of Economics, University of Konstanz, Germany)

  • Thushyanthan Baskaran

    () (Department of Economics, University of Göttingen, Germany)

Abstract

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.

Suggested Citation

  • Zohal Hessami & Thushyanthan Baskaran, 2013. "Has Globalization Affected Collective Bargaining? An Empirical Test, 1980-2009," Working Paper Series of the Department of Economics, University of Konstanz 2013-02, Department of Economics, University of Konstanz.
  • Handle: RePEc:knz:dpteco:1302
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    Keywords

    Globalization; collective bargaining; government intervention; trade unions;

    JEL classification:

    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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