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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