Trade unionism and growth: a panel data study

Abstract

This paper investigates the long-run relationship between trade unionism and economic growth using a panel data set comprising of 18 OECD economies. Much of the existing evidence on the effects of unionism on productivity derives from microeconomic studies, with little attention to the dynamics of this relationship and the economy-wide effects. Using the recently developed mean group and pooled mean group estimation techniques on cross-country panel data, the paper offers support to the “enhancing-worker-morale face of unionism” hypothesis, revealing a positive relationship between trade union density and labour productivity. J.E.L. Classification: C23, J51, O4

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