Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216327 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13015
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We present theoretical and empirical evidence challenging results from early studies that found unions were detrimental to workplace innovation. Under our theoretical model, which extends the Cournot duopoly innovation model, local union wage bargaining is more conducive to innovation - particularly product innovation - than competitive pay setting. We test the theory with workplace data for Britain and Norway. Results are consistent with the theory: local union bargaining is positively associated with product innovations in both countries. In Norway, local union bargaining is also positively associated with process innovation.
Subjects: 
product innovation
process innovation
trade unions
collective bargaining
JEL: 
J28
J51
J81
L23
O31
Document Type: 
Working Paper

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