Income distribution and union density: an analysis for OECD Countries, 2000‑2019
https://doi.org/10.33110/cimexus200213
Keywords:
union density, income distribution, wages, OCDEAbstract
The aim of this study is to examine the relationship between union density and the share of wages and salaries in national income for a sample of 17 OECD countries during the period 2000–2019. To this end, a PMG-ARDL panel data econometric model was developed to identify short- and long-term relationships. The results show that the unionization rate had a positive and significant impact on the share of wages and salaries in national income. Additionally, evidence was found that minimum wages and working hours also have a positive impact, while inflation, tax collection, and productivity have a negative effect. These results confirm the relevance of unionism as a redistributive mechanism in modern economies.
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