Trade Union Density and Inflation Performance: Evidence from OECD Panel Data

25 Pages Posted: 13 Jan 2007

See all articles by C. Bowdler

C. Bowdler

University of Oxford

L. Nunziata

University of Padua - Department of Economics; IZA Institute of Labor Economics

Abstract

This paper examines the impact of union membership rates on inflation in OECD countries. A positive effect of union density is estimated, even after controlling for fixed effects and time dummies. Additional institutional characteristics, for example union coordination, employment protection laws and central bank independence, do not affect inflation directly in a panel setting, but do influence the size of the unionization coefficient via interaction terms. The results are robust to controlling for potential common causes such as oil price shocks and the political stance of the government, and to using GMM/IV techniques to handle possible endogeneity biases.

Suggested Citation

Bowdler, Christopher and Nunziata, Luca, Trade Union Density and Inflation Performance: Evidence from OECD Panel Data. Economica, Vol. 74, No. 293, pp. 135-159, February 2007. Available at SSRN: https://ssrn.com/abstract=956969 or http://dx.doi.org/10.1111/j.1468-0335.2006.00532.x

Christopher Bowdler (Contact Author)

University of Oxford ( email )

Oxford
United Kingdom

Luca Nunziata

University of Padua - Department of Economics ( email )

via Del Santo 33
Padova, 35123
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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