Are Good Industrial Relations Good for the Economy?

John Addison, P. Teixeira

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Recent US microeconomic analysis indicates that good industrial relations might improve firm performance. Of late, it has also been claimed that the benefits of industrial relations quality - proxied inversely by a strikes variable - could also extend to the macroeconomy. Using cross-country data, we find that, independent of other labor market institutions, a lower strike volume is associated with lower unemployment. Although there is a separate line of causation running from unemployment to strikes, our analysis suggests that this is not dominant. That said, support for the notion that macro performance owes something to good industrial relations is, however, weakened once we formally control for strike endogeneity.
Original languageEnglish
Pages (from-to)253-269
Number of pages17
JournalGERMAN ECONOMIC REVIEW
Volume10
Issue number3
Publication statusPublished - 2009

ASJC Scopus subject areas

  • Economics and Econometrics

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  • Cite this

    Addison, J., & Teixeira, P. (2009). Are Good Industrial Relations Good for the Economy? GERMAN ECONOMIC REVIEW, 10(3), 253-269.