Labour movement organization and political intervention

Publisher Website
Google Scholar
Abstract
In contrast to much of the recent emphasis on micro economic reform and market oriented economic policy, there is a strong argument in favour of considering political institutional factors. In particular, these include the power of labour in systems of collective bargaining and in broader policy formulation institutions which is an essential element of successful economic policy, especially the achievement of low rates of unemployment. The research reported in this paper is aimed at developing an explanation of the ability of the organized labour movement to promote its political interests through the institutional decision making structures of modern capitalist economies. We argue that, where labour participation is formalised in these institutional arrangements, specific policy measures conducive to low unemployment will be favoured, including relatively high levels of public capital expenditure and the protection of manufacturing employment. Most comparative studies of the consequences of collective action and of political intervention in the market employ a cross‐sectional design that limits the number of cases in statistical analyses to the number of countries covered. In this paper we present the results of an analysis of comparative data on 11 OECD countries using a pooled time series regression procedure that enables us to use many more cases than is possible with the cross‐sectional design. In this way we arrive at more firmly grounded conclusions as to the efficacy of labour movement strategies in reducing unemployment.