Collective bargaining is associated with lower income inequality. 14/03/2023
Darvas, Zsolt ; Gotti, Giulia ; Sekut, Kamil
Bruegel - Brussels
2023
1 p.
trade unionization ; collective bargaining ; trade union membership ; social inequality ; income distribution
Collective bargaining
https://www.bruegel.org/analysis/collective-bargaining-associated-lower-income-inequality
English
"In most developed economies, wages and working conditions are set through a collective bargaining process involving various social partners, typically trade unions, employers' organisations and the government. These arrangements are complex and vary considerably from country to country. Some economists have suggested that declining unionisation increases income inequality (Freeman and Medoff, 1984; Card et al, 2007; Stansbury and Summers, 2020). In this analysis, we explore trends in union density and collective-bargaining coverage to better understand their relationship with income inequality in Organisation for Economic Co-operation and Development countries. "
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