What Do Unions Do at the Large Scale? Macro-Economic Evidence from a Panel of OECD Countries

Abstract

This paper investigates the long-run relationship between trade unionism and productivity using a panel data set comprising of 18 OECD economies. Much of the existing evidence on this issue derives from micro-economic studies, with limited attention paid to long-run dynamics and economy-wide effects. Using the mean group and pooled mean group estimation techniques on crosscountry panel data, the paper offers support to the "productivity-increasing face of unionism" hypothesis, revealing a positive relationship between trade union density and per worker output. JEL classification codes: C23, J51, O4