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Are Leftist Governments More Generous Toward Public Sector Employees? Evidence From Canada, 1967–1984
Author(s) -
BLAIS ANDRÉ,
BLAKE DONALD,
DION STEPHANE
Publication year - 1993
Publication title -
governance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.46
H-Index - 76
eISSN - 1468-0491
pISSN - 0952-1895
DOI - 10.1111/j.1468-0491.1993.tb00137.x
Subject(s) - left wing politics , public sector , economics , spillover effect , private sector , wage , labour economics , politics , political economy , political science , economy , economic growth , macroeconomics , law
This article tests the hypothesis that leftist governments concede higher wage increases to their public sector employees than right‐wing governments. Leftist governments are expected to be more generous toward public sector employees because of their commitment to public sector intervention, and because of the heavy representation of the public sector among leftist party elite and clientele. The study examines all major wage settlements signed between 1967 and 1984 in the Canadian provincial public sector and finds that, everything else being equal, wage increases are 10% higher under leftist governments. The standard economic variables (labor demand, expected inflation and spillover from previous contracts) that have been shown to affect wage increases in the private sector also emerge as significant. Finally, the data indicate that the greater the public debt the more constrained governments feel to negotiate minimal wage increases. These findings establish that a proper understanding of public sector labor relations requires a consideration of political as well as economic variables.