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

Description

"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"--Forschungsinstitut zur Zukunft der Arbeit web site.

Subjects

Series Statement

• Discussion paper -- no. 1968
• Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) -- no. 1968

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• External source