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Unions, Tripartite Competition and Innovation

Author

Listed:
  • Alex Bryson

    (University College London)

  • Harald Dale-Olsen

    (Institute for Social Research)

Abstract

We present theoretical and empirical evidence challenging results from early studies that found unions were detrimental to workplace innovation. Under our theoretical model, which extends the Cournot duopoly innovation model, local union wage bargaining is more conducive to innovation - particularly product innovation - than competitive pay setting. We test the theory with workplace data for Britain and Norway. Results are consistent with the theory: local union bargaining is positively associated with product innovations in both countries. In Norway, local union bargaining is also positively associated with process innovation.

Suggested Citation

  • Alex Bryson & Harald Dale-Olsen, 2020. "Unions, Tripartite Competition and Innovation," DoQSS Working Papers 20-02, Quantitative Social Science - UCL Social Research Institute, University College London.
    • Handle: RePEc:qss:dqsswp:2002
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    2. Lucifora, Claudio & Origo, Federica, 2025. "Rigid Yet Resilient: Firms' Margins of Adjustment to Demand Shocks in Regulated Labour Markets," IZA Discussion Papers 17670, Institute of Labor Economics (IZA).
    3. Cetrulo, Armanda & Cirillo, Valeria & Landini, Fabio, 2022. "Organized Labour and R&D: Evidence from Italy," GLO Discussion Paper Series 1195, Global Labor Organization (GLO).
    4. Julimar da Silva Bichara & Sandro E. Monsueto & Ana I. Viñas, 2023. "Collective bargaining and technological innovation in the EU15: An analysis at establishment level," The World Economy, Wiley Blackwell, vol. 46(9), pages 2891-2924, September.
    5. Cardullo, Gabriele & Conti, Maurizio & Sulis, Giovanni, 2020. "A model of unions, two-tier bargaining and capital investment," Labour Economics, Elsevier, vol. 67(C).
    6. Laroche, Patrice, 2020. "Unions, Collective Bargaining and Firm Performance," GLO Discussion Paper Series 728, Global Labor Organization (GLO).
    7. Berton, Fabio & Dughera, Stefano & Ricci, Andrea, 2021. "Are Unions Detrimental to Innovation? Theory and Evidence," IZA Discussion Papers 14102, Institute of Labor Economics (IZA).

    More about this item

    Keywords

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    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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