@techreport{NBERw7501,
 title = "The Effect of Unions on Employment: Evidence from an Unnatural Experiment in Uruguay",
 author = "Adriana Cassoni and Steven G. Allen and Gaston J. Labadie",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "7501",
 year = "2000",
 month = "January",
 URL = "http://www.nber.org/papers/w7501",
 abstract = {This study examines the impact of unions on wages and employment using data from Uruguay in a period where unions were banned (1973-1984), then legalized with tripartite bargaining (1984-1991) followed by industry-wide or firm-specific bargaining (1992-1997).  The relationship between wages and employment shifted significantly across these periods as evidenced by -   Recursive residuals show structural shifts in five of six industries with the shifts coming at the same time as the regime changes. -   Wages are exogenous to employment before 1985, but not afterwards. -   The wage elasticity and the employment-output elasticity fell sharply after 1984. -   Unions significantly raised wages in 1985-1992, but afterwards the change in bargaining structure and increased openness led to concessions. -   Starting in 1985, workers in unionized industries were less likely to be laid off than workers in nonunion industries.},
}