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Macroeconomic outcomes, collective bargaining and intersectoral productivity differentials: a panel approach

Original Paper


Using a sample of 19 advanced countries from 1990 to 2014 and an Arellano–Bover/Blundell–Bond linear dynamic GMM estimator along with a bootstrap-based bias correction fixed effects estimator for dynamic panels, the paper examines the macroeconomic impact of collective bargaining structures in a context of varying intersectoral heterogeneity in productivity growth among the exposed and sheltered sectors of the economy. Results show a dampening impact of pattern and centralized bargaining structures on unemployment. However, strong domestic demand is a key precondition for such a favourable effect to materialize. Uncoordinated and centralized bargaining structures are the most efficient in terms of labour cost restraint while industry bargaining moderates labour cost growth as intersectoral productivity differentials widen.


Macroeconomic performance Collective bargaining Intersectoral productivity differentials Unemployment Labour cost growth External and fiscal balances 

JEL Classification

E02 F1 F16 J5 J3 J64 



The authors would like to thank Professor Stephen Hall for helpful comments and suggestions. The views expressed are those of the authors and do not necessarily reflect those of the Bank of Greece.


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Copyright information

© Springer Science+Business Media, LLC 2017

Authors and Affiliations

  1. 1.National and Kapodistrian University of AthensAthensGreece
  2. 2.Economic Research DepartmentBank of GreeceAthensGreece

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