Do Unions and Collective Bargaining Impact Economic Inequality in OECD Nations?

Author

Brady D. Crosby

Date of Award

5-2024

Document Type

Thesis

Department

Political Science

Abstract

The decline of unionization has coincided with a dramatic increase in income and wealth inequality within countries across the world. Many theories in the existing literature have been proposed to explain both trends, including technology/automation, globalization and shifts in public policy. I analyze the impact of collective bargaining rates and union density on economic inequality. To test the connection between collective bargaining, labor unions and inequality, I use a series of statistical tests, including basic correlation tests, as well as a series of linear regression tests with Gini, union density, collective bargaining among other variables. The results show a moderately strong correlation between both union density and Gini and between collective bargaining coverage and Gini in OECD nations. In bivariate analysis collective bargaining is shown to have a stronger impact on inequality, however when alternative variables are added to the test, union density consistently has a stronger impact on Gini. These results suggest that if we seek to reduce inequality and likely the polarization that stems from it, that not only is it important to have strong collective bargaining agreements, but it is more important is to have an organized labor movement.

Recommended Citation

Crosby, Brady D., "Do Unions and Collective Bargaining Impact Economic Inequality in OECD Nations?" (2024). Political Science Theses and Capstones. 3.
https://pines.bemidjistate.edu/capstone-polisci/3