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Productivity, Real Wages and Worker Rights: A Cross‐National Comparison
Author(s) -
Buchele Robert,
Christiansen Jens
Publication year - 1995
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.1995.tb00185.x
Subject(s) - productivity , labour economics , employment protection legislation , unemployment , efficiency wage , economics , deregulation , wage , legislation , flexibility (engineering) , order (exchange) , market regulation , real wages , labour market flexibility , market economy , macroeconomics , management , finance , political science , law
High unemployment in Europe has led many economists to recommend labour market deregulation — the removal of obstacles to labour market flexibility. These “obstacles” include union power, employment protection legislation and income security arrangements. We argue that such worker rights promote productivity and real wage growse effects. Policy‐makers should be aware of these positive effects on productivity and real wage growth when considering curtailing worker rights in order to reduce unemployment.