TY  - JOUR
AU  - Cassoni,Adriana
AU  - Allen,Steven G.
AU  - Labadie,Gaston J.
TI  - The Effect of Unions on Employment: Evidence from an Unnatural Experiment in Uruguay
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7501
PY  - 2000
Y2  - January 2000
UR  - http://www.nber.org/papers/w7501
L1  - http://www.nber.org/papers/w7501.pdf
N1  - Author contact info:
Adriana Cassoni

Steven G. Allen
Jenkins Graduate School of Management
NC State University
2124 Nelson Hall
Raleigh, NC  27695-7229
Tel: 919/515-6941
Fax: 919/515-5073
E-Mail: STEVE_ALLEN@NCSU.EDU

Gaston J. Labadie
AB  - 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.
ER  -