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The Impact of Trade Unions: What Do Economists Say?

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In Defence of Labour Market Institutions

Part of the book series: The International Labour Organization

Abstract

The effects of trade unions, and of collective bargaining more broadly, on the specific sectors in which they operate or the economy at large vary depending on what unions, employers and governments do or want to do and whether the economy is competitive and open to trade. Various combinations of unions, firms, governments and types of economies can give rise to different economic outcomes of an otherwise identical configuration of organized labour. Even for the same economy, and union characteristics, effects can be different at different points in a country’s history. And even if the rypology of unions and collective bargaining were clear, there is a multitude of indicators for economic performance: this chapter focuses on more than 30 such indicators (Table 8.1) and this only because it presents a summary of more than one thousand studies on the subject, perhaps omitting as many others.

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Notes

  1. H.G. Lewis (1986) Union Relative Wage Effects: A Survey (Chicago: University of Chicago Press).

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  12. This proposition has solid theoretical foundation in perfectly competitive markets and has been favoured by many researchers, both early and more recent ones. For example, see World Bank (1995) World Development Report: Workers in an integrating World (Washington DC: Oxford University Press and the World Bank).

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  1. Zafiris Tzannatos
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Editors and Affiliations

  1. Geneva, Switzerland

    Janine Berg (Senior Labour Economist in the Economic and Labour Market) (Senior Labour Economist in the Economic and Labour Market)

  2. International Labour Office, Geneva, Switzerland

    David Kucera (Senior Research Economist in the Policy Integration Department) (Senior Research Economist in the Policy Integration Department)

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Tzannatos, Z. (2008). The Impact of Trade Unions: What Do Economists Say?. In: Berg, J., Kucera, D. (eds) In Defence of Labour Market Institutions. The International Labour Organization. Palgrave Macmillan, London. https://doi.org/10.1057/9780230584204_8

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