BibTeX
@MISC{Checchi_ineuropean,
author = {Daniele Checchi and Daniele Checchi},
title = {in European countries †},
year = {}
}
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Abstract
Daniele Checchi – University of Milan We follow a business cycle approach to study the determinants of union density, finding evidence of negative effects of labour market slack (proxied by unemployment) and some impact of compositional effects (negative impact of increased labour market participation, as measured by the employment rates, and positive effect of educational attainment in the population, as measured by the population with secondary degrees or more). For a subset of countries we also show that the sectoral changing composition (decline of industry and increase in private services) and increased flexibility in the labour market (as measured by temporary workers) have an adverse effect on density. This pattern is common to all 14 European countries under analysis, with national variations due to inflation rates, wage shares on value added, unemployment subsidies and government political orientation. However Nordic countries distinguish themselves from the common pattern in that they exhibit a positive long-term relationship between union density and unemployment. This may possibly be explained by the fact that Nordic unions provide services to unemployed workers (the so-called Ghent system: mainly administration of unemployment benefits, but also job counselling and general training). The general
Keyphrases
european country union density employment rate increased labour market participation sectoral changing composition general training business cycle approach temporary worker positive effect unemployment benefit national variation labour market slack inflation rate secondary degree wage share compositional effect nordic union negative impact nordic country common pattern private service positive long-term relationship daniele checchi university unemployed worker so-called ghent system negative effect labour market educational attainment adverse effect increased flexibility government political orientation unemployment subsidy
