Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/33502
Authors: 
Addison, John T.
Teixeira, Paulino
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers 1968
Abstract: 
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.
Subjects: 
strike rate/volume
quality of labor relations
labor market institutions
unemployment
JEL: 
E24
J52
J53
J64
J65
Document Type: 
Working Paper

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