Industrial Relations and Macroeconomic Performance
Author | : International Monetary Fund |
Publisher | : International Monetary Fund |
Total Pages | : 42 |
Release | : 1990-10-01 |
Genre | : Business & Economics |
ISBN | : 1451951094 |
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The paper analyzes the macroeconomic implications of different systems of industrial relations. After reviewing the relevant literature, and analyzing cross-country evidence, the paper focuses on the experience of centralized bargaining characterizing Spain in the period 1979-86. The paper argues, in accordance with the literature and the cross-country evidence, that the centralization of bargaining yielded positive macroeconomic effects in Spain, and thus that the shift toward a more decentralized setting after 1987 carries several risks. This conclusion is based on an empirical analysis of the wage setting process and of the evolution of labor shares in income.