|Title||Has Globalization Affected Collective Bargaining? An Empirical Test, 1980–2009|
|Publication Type||Journal Article|
|Year of Publication||2014|
|Authors||Hessami, Zohal, and Baskaran, Thushyanthan|
|Journal||The World Economy|
|Volume||Article first published online: 16 DEC 2014|
|Keywords||collective bargaining, decentralized bargaining, emerging countries, globalization, government intervention, OECD, unionization|
We investigate whether globalization has affected the nature of collective bargaining in OECD and emerging countries. The main innovations over the existing empirical literature are (i) the consideration of three distinct aspects of collective bargaining (union density, decentralised bargaining and the extent of government intervention), (ii) the reliance on a sample with a larger cross-sectional and time dimension (44 countries from 1980 to 2009), and (iii) the application of a more appropriate empirical methodology (dynamic panel data models). We find that globalization, on average, depresses unionisation but neither affects the degree of decentralisation nor government intervention in collective bargaining. We also uncover significant effect heterogeneity, both across countries and over time.