The quality of labor relations and unemployment
By: Olivier Blanchard [and] Thomas Philippon
Contributors: Philippon, Thomas; Massachusetts Institute of Technology. Dept. of Economics
Series: Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 04-25; Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 04-25.
Publisher: Massachusetts Institute of Technology, Dept. of Economics
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Number of pages: 21
Description: In countries where wages are primarily set by collective bargaining, the effects on unemployment of changes in the economic environment depend crucially on the speed of learning of unions. This speed of learning is likely to depend in turn on the quality of the dialogue that unions have with firms, on what can more generally be called the quality of labor relations. In this paper, we examine the role this quality of labor relations has played in the evolution of unemployment across European countries over the last 30 years. We conclude that it has played an important role: Countries with worse labor relations have experienced higher unemployment. This conclusion remains even after controlling for labor institutions. Keywords: Unemployment, labor relations, unions, strikes, Europe JEL Classifications: E24, J5, J64.
Notes: "June 15, 2004."

Includes bibliographical references (p. 21).

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