Download - SSRN-id1884285
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7/31/2019 SSRN-id1884285
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Figure 1: Patterns of Union Strength
AustraliaAustria
Belgium
Canada
DenmarkFinland
France
Germany
Greece
Ireland
Italy
Japan
Netherlands
New Zealand
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom
United States20
40
60
80
100
0 20 40 60 80Union density
Patterns of Union Power
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Figure 2: Labor Law and Union Strength
Australia
Austria
Belgium
Canada
DenmarkFinland
France
Germany
Greece
Ireland
Italy
Japan
Netherlands
New Zealand
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom
United States
0
.5
1
1.5
2
.2 .3 .4 .5 .6 .7Collective labor laws index
Labor Law and Union Strength
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Figure 3: Labor Law and Excess Coverage
Australia
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Italy
Japan
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom
United States0
20
40
6
0
80
.2 .3 .4 .5 .6 .7index_industrial4a
Fitted values excov
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Bivariate
Correlations Ghent Wage Coordination Extension Works Council Union Power Hold Up
Ghent 1.000
Wage Coordination 0.2630 1.0000
Extension -0.0892 0.3269 1.0000
Works Council -0.2293 0.2632 0.7480 1.0000
Union Power -0.1848 0.1226 0.2475 0.1217 1.0000Hold Up -0.5438 -0.3053 -0.1834 -0.0702 -0.2776 1.0000
Table 1: Bivariate Correlation Matrix
Table 2: Descriptive Labor Law Statistics
Extension Works Council Union Power Hold Up
HDHC countries
Belgium 1 1 0.25 0.5
Denmark 0 0 0.25 0.25Finland 1 0 0.25 0
Norway 0 0 0.5 0.5
Sweden 0 0 0.5 0.25
HDHC Mean 0.4 0.2 0.35 0.3
LDHC countries
Australia 1 0 0.75 0.5
Austria 1 1 0 0.75
France 1 1 0.5 1
Germany 1 1 0.25 0.5
Greece 1 1 0.5 0.25
Italy 0 0 0.5 1
Netherlands 1 1 0.5 0.5
Portugal 1 1 0.75 0.25
Spain 1 1 0.75 0.25
LDHC Mean 0.89 0.78 0.5 0.56
LDLC countriesCanada 0 0 0.5 0.25
Ireland 0 0 0.25 0.75
Japan 0 0 0.5 0.5
New Zealand 0 0 0.25 0.75
Switzerland 1 0 0.5 0.75
United Kingdom 0 0 0 0.75
United States 0 0 0.25 0.75
LDLC Mean 0.14 0 0.32 0.64
Overall Mean (s.d.) 0.52 (0.51) 0.38 (0.50) 0.40 (0.22) 0.52 (0.27)
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OLS Density Controls Labor Law Combined Reduced (Extension) Reduced (WC)
Ghent system 48.7***
(7.8)
40.0***
(5.1)
46.1***
(8.1)
44.8***
(7.3)
Wage coordination 16.5(1.6)
26.5**(2.5)
25.0**(2.5)
23.5**(2.3)
Extension 0.0(0.0)
-6.0(-1.0)
-9.7**(-2.3)
Works council -13.5(-1.2)
-5.0(-0.8)
-8.9*(-2.0)
Union power -38.2*
(-2.1)
-13.9
(-1.3)
Hold up -48.1***
(-3.3)
-8.0
(-0.8)
Adj. R-squared 0.79 0.38 0.82 0.82 0.83
N. obs. 21 21 21 21 21
Table 3: OLS Union Density, t-scores in parentheses
OLS Coverage Controls Labor Law Combined Reduced (Extension) Reduced (WC)Ghent system 21.42
(1.44)
55.80***
(3.93)
48.81***
(3.33)
59.20***
(4.41)
Wage coordination 41.29
(1.66)
11.04
(0.59)
Extension 15.89
(1.01)
9.99
(0.88)
30.07***
(3.62)
Works council 13.01
(0.83)
25.82**
(2.21)
35.02***
(4.63)
Union power 16.12
(0.64)
49.66**
(2.50)
42.29*
(1.96)
54.90***
(2.91)
Hold up -13.75
(-0.69)
36.56*
(1.98)
30.75
(1.52)
35.22*
(1.96)
Adj. R-squared 0.18 0.22 0.61 0.63 0.52
N. obs. 21 21 21 21 21
Table 4: OLS Union Coverage, t-scores in parentheses
OLS E/R Density Controls Labor Law Combined Reduced (Extension) Reduced
(WC*Hold Up)
Ghent system -12.23(-0.72)
9.37(0.45)
Wage coordination 28.00
(1.69)
31.58
(1.17)
36.35
(1.44)
32.64
(1.43)
Extension 19.68(1.24)
15.92(0.98)
24.82**(2.33)
Works council 16.17
(0.99)
16.99
(1.01)
Union power -24.74
(-0.96)
-18.69
(-0.66)
Hold up 18.96(0.92)
34.03(1.23)
33.81(1.70)
WC*Hold up 49.07***(2.93)
Adj. R-squared 0.05 0.26 0.26 0.30 0.35
N. obs. 20 20 20 20 20
Table 5: OLS Employer Density, t-scores in parentheses
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GLM Density Controls Labor Law Combined Reduced (Extension) Reduced (WC)
Ghent system 2.1416***
(11.62)
1.6984***
(4.73)
1.9937***
(8.86)
1.8833***
(7.26)
Wage coordination 0.8433
(1.51)
1.3350*
(1.83)
1.2931*
(1.80)
1.2998*
(1.84)
Extension -0.0046
(-0.01)
-0.2891
(-1.07)
-0.4544*
(-1.73)
Works council -0.6364***
(-3.26)
-0.2812
(-1.31)
-0.4542*
(-1.82)
Union power -1.8505***
(-2.87)
-0.7841**
(-2.13)
-0.4864
(-1.44)
-0.6706**
(-2.44)
Hold up -2.3616***
(-3.43)
-0.4770
(-1.09)
AIC 1.0787 1.3182 1.4453 1.2573 1.2578
N. obs. 21 21 21 21 21
Table A1: GLM Union Density, t-scores in parentheses
GLM Coverage Controls Labor Law Combined Reduced (Extension) Reduced (WC)
Ghent system 1.2402***
(2.78)
3.0588***
(5.28)
2.4826***
(3.52)
3.2315***
(6.69)
Wage coordination 1.7365(1.26)
0.2767(0.25)
Extension 0.6356
(1.17)
0.3100
(0.65)
1.4190***
(3.52)
Works council 0.7394
(1.75)
1.4982***
(3.74)
1.7984***
(5.82)
Union power 0.8839
(0.98)
2.6419***
(3.70)
1.9419**
(2.18)
2.9021***
(3.86)
Hold up -0.6733
(-0.69)
2.0704***
(2.65)
1.4750
(1.43)
2.1186***
(3.06)
AIC 1.1849 1.3438 1.4281 1.2732 1.2403
N. obs. 21 21 21 21 21
Table A2: GLM Union Coverage, t-scores in parentheses
GLM E/R Density Controls Labor Law Combined Reduced (Extension) Reduced (WC)
Ghent system -0.5031
(-1.28)
0.4478
(0.88)
Wage coordination 1.9820
(1.33)
1.5474
(1.45)
1.637062
(1.38)
1.3550
(1.08)
Extension 0.8507
(1.37)
0.7160
(1.08)
1.0660***
(2.78)
Works council 0.7273
(1.23)
0.7953
(1.11)
Union power -1.1676
(-1.41)
-1.0136
(-1.08)
Hold up 0.8554
(1.29)
1.6180**
(2.19)
1.5155**
(2.04)
WC*Hold up 2.2650***
(3.83)
AIC 1.2934 1.4131 1.5869 1.3155 1.2123
N. obs. 20 20 20 20 20
Table A3: GLM Employer Density, t-scores in parentheses