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The Effects of Collective Bargaining Systems on the Productivity Function of Firms: An Analysis of Bargaining Structures and Processes and the Implications for Policy Making

Brandl, B. and Braakmann, N. (2021) 'The Effects of Collective Bargaining Systems on the Productivity Function of Firms: An Analysis of Bargaining Structures and Processes and the Implications for Policy Making.', Industrial relations journal., 52 (3). pp. 218-236.

Abstract

In recent years, individual and company bargaining have increasingly supplanted sector and country collective bargaining leading to increasingly heterogeneous and perforated, i.e. hybrid, national collective bargaining systems. Little is known about the relative effects of these different systems. In this paper the authors derive and test a comprehensive categorization of collective bargaining systems and argue that different systems are associated with different production functions and therefore have different effects on labour productivity. The hypotheses are tested using representative workplace level data for all member states of the European Union. It is found that the performance of coordinated sector collective bargaining systems is higher than for all other forms of collective and individual bargaining. Policy implications of the results are discussed as these results challenge attempts to reform collective bargaining in Europe.

Item Type:Article
Keywords:Collective Bargaining; European Union, Institutional Reform; Comparative Industrial Relations; Public Policy Making; Labour Productivity; Firm Performance
Full text:Publisher-imposed embargo
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Status:Peer-reviewed
Publisher Web site:https://doi.org/10.1111/irj.12325
Publisher statement:© 2021 The Authors. Industrial Relations Journal published by Brian Towers (BRITOW) and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.
Date accepted:10 March 2021
Date deposited:16 March 2021
Date of first online publication:04 April 2021
Date first made open access:07 October 2021

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