The Quality of Industrial Relations and Labour Market Performance

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Using data from 19 industrial countries for the period 1985-2002, this paper analyses whether the quality of industrial relations affects unemployment and employment rates. To measure the quality of industrial relations, we use the results of surveys in which senior business executives characterized the industrial relations of their countries. Controlling for the impact of major labour market institutions, the business cycle, the level of economic development, unobserved country effects, as well as endogeneity, we find that cooperative industrial relations are likely to lower unemployment and to increase employment. The effects appear to be large, particularly among young people.
Original languageEnglish
Pages (from-to)559-579
Number of pages21
Issue number3
Early online date11 Sept 2006
Publication statusPublished - 11 Sept 2006


  • Labor-Management Relations
  • Industrial Jurisprudence (J530)

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