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Collective Bargaining and Innovation

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • John T. Addison & Paulino Teixeira & Katalin Evers & Lutz Bellmann, 2015. "Collective Bargaining and Innovation," Working Paper series 15-07, Rimini Centre for Economic Analysis.
  • Handle: RePEc:rim:rimwps:15-07
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    References listed on IDEAS

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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 Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explanations With A Dynamic General Equilibrium Model of Labor Earnings With Heterogeneous Agents," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 1-58, January.
    4. 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.
    5. 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, August.
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    Cited by:

    1. Denis Fougère & Francis Kramarz & Julien Pouget, 2009. "Youth Unemployment and Crime in France," Journal of the European Economic Association, MIT Press, vol. 7(5), pages 909-938, September.
    2. Addison, John T. & Teixeira, Paulino, 2017. "Workplace Employee Representation and Industrial Relations Performance: New Evidence from the 2013 European Company Survey," IZA Discussion Papers 10899, Institute for the Study of Labor (IZA).
    3. Antonio Merlo & Kenneth I. Wolpin, 2008. "The Transition from School to Jail: Youth Crime and High School Completion Among Black Males, Second Version," PIER Working Paper Archive 09-002, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 16 Jan 2009.
    4. Merlo, Antonio & Wolpin, Kenneth I., 2015. "The transition from school to jail: Youth crime and high school completion among black males," European Economic Review, Elsevier, vol. 79(C), pages 234-251.
    5. Arnd Kölling, 2014. "Labor Demand and Unequal Payment: Does Wage Inequality matter? Analyzing the Influence of Intra-firm Wage Dispersion on Labor Demand with German Employer-Employee Data," Working Paper Series in Economics 326, University of Lüneburg, Institute of Economics.
    6. Addison, John T. & Teixeira, Paulino, 2017. "Strikes, Employee Workplace Representation, Unionism, and Trust: Evidence from Cross-Country Data," IZA Discussion Papers 10575, Institute for the Study of Labor (IZA).

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