Making sense of the numbers: Sector wage bargaining – a literature review

Summary

This study uses New Zealand collective agreements to assess the relationship between productivity and agreements. They find that collective bargaining does have a positive impact on wage markup, but that this does not necessary correlate with increases in profitability. However, evidence over 20 years does suggest that the erosion of collective bargaining leads to an increase in the gap between organisational productivity and wage markup.

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