Does the quality of industrial relations matter for the macro economy? A cross-country analysis using strikes data

Arbeitspapier

Using international data, we investigate whether the quality of industrial relations matters for the macro economy. We measure industrial relations inversely by strikes - which proxy we cross-check with an industrial relations reputation indicator - and our macro performance outcome is the unemployment rate. Independent of the role of other institutions, good industrial relations do seem to matter: greater strike volume is associated with higher unemployment. Holding country effects constant, however, the sign of the variable is reversed. This fixed-effects result likely picks up a direct effect of strikes, namely, their tendency to rise when striking becomes more attractive to the union.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 1968

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Dispute Resolution: Strikes, Arbitration, and Mediation; Collective Bargaining ; Labor-Management Relations; Industrial Jurisprudence ; Unemployment: Models, Duration, Incidence, and Job Search ; Unemployment Insurance; Severance Pay; Plant Closings
• Subject: strike rate/volume ; quality of labor relations ; labor market institutions ; unemployment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Addison, John T. ; Teixeira, Paulino
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/33502
• Last update: 10.03.2025, 11:43 AM CET