A Tale of Two Countries: Unions,Closure and Growth in Britain and Norway

Publication date: 5 Mar 2009 | Publication type: Conference and seminar output | Theme: Employment & Social policy | NIESR Author(s): Bryson, A | External Author(s): Dale-Olsen, H. | JEL Classification: J51

Using linked private sector employer-employee panel data for Britain and Norway we explore the effects of unionization on workplace closure and employment growth over the period 1997-2004. Unions prolonged the life of low-wage workplaces in Britain, whereas Norwegian unions increased (reduced) closure hazards in high (low) waged workplaces. Contrary to earlier studies, unions had no effect on workplace growth in Britain. In Norway, union workplaces experienced 4 percent per annum lower growth. However, the estimation of a dynamic panel data model for Norway indicates positive long-term causal effects of union density on employment.

Keyword tags: 
unions, closure, employment growth, comparative, system-GMM

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