Contributions

  • Philippon, Thomas - Contributor
  • Massachusetts Institute of Technology. Dept. of Economics - Contributor

Publication

2004 - Massachusetts Institute of Technology, Dept. of Economics, Cambridge, MA, Massachusetts

Language

English

Word Count

5,250 words, Guess

Page Count

21 pages

Identifiers

Description

In countries where wages are primarily set by collective bargaining, the effects on unemployment of changes in the economic environment depend crucially on the speed of learning of unions. This speed of learning is likely to depend in turn on the quality of the dialogue that unions have with firms, on what can more generally be called the quality of labor relations. In this paper, we examine the role this quality of labor relations has played in the evolution of unemployment across European countries over the last 30 years. We conclude that it has played an important role: Countries with worse labor relations have experienced higher unemployment. This conclusion remains even after controlling for labor institutions. Keywords: Unemployment, labor relations, unions, strikes, Europe JEL Classifications: E24, J5, J64.

Subjects

Series Statement

  • Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 04-25
  • Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 04-25.

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