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Collective Bargaining and Innovation

  • John T. Addison

    ()

    (University of South Carolina, Durham University, U.S.A.; IZA Bonn, Germany; The Rimini Centre for Economic Analysis, Italy)

  • Paulino Teixeira

    ()

    (University of Coimbra and GEMF, Portugal; IZA Bonn, Germany)

  • Katalin Evers

    ()

    (Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit, Germany)

  • Lutz Bellmann

    ()

    (Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit, IZA Bonn, Germany)

At the level of theory, the effect of collective bargaining on innovation is disputed. The U.S. evidence clearly points to adverse effects, but other-country experience suggests that certain industrial relations systems, or the wider regulatory apparatus, might even tip the balance in favor of unions. Our pooled cross section and difference-in-differences estimates provide weak evidence that German collective bargaining inhibits innovation. However, in conjunction with workplace representation, it might even foster innovative activity.

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Paper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 15-07.

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Date of creation: Feb 2015
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Handle: RePEc:rim:rimwps:15-07
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  1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
  2. Eric D. Gould & Bruce A. Weinberg & David B. Mustard, 2002. "Crime Rates And Local Labor Market Opportunities In The United States: 1979-1997," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 45-61, February.
  3. James J. Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explorations with a Dynamic General Equilibrium Model of Labor Earnings with Heterogeneous Agents," NBER Working Papers 6384, National Bureau of Economic Research, Inc.
  4. Lance Lochner, 2004. "Education, Work, And Crime: A Human Capital Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 811-843, 08.
  5. Marco Cozzi, 2005. "Black-White Labour Market Conditions and Property Crime in the US: A Quantitative Analysis," Computing in Economics and Finance 2005 339, Society for Computational Economics.
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