CEU Electronic Theses and Dissertations, 2024
| Author | Binati, Jacopo |
|---|---|
| Title | The Impact of Trade Unions Dynamics on Income Inequality Trends in European Union Countries |
| Summary | This thesis explores the relationship between trade union dynamics and trends in income inequality across EU countries. Using data from the World Bank and OECD, the study uses a two-way fixed effects model with instrumental variables to identify the effect of union density and coverage by collective agreements on income inequality, which is computed by the Gini Index. The results suggest a nonlinear relationship: enhancement of union density initially lowers inequality, but the effect decreases as union density rises. This is indicative of the intricate effects of trade unions, which in turn dictate the need for subtle policy implementations. The study also finds that low-skill workers and new labour market entrants are the biggest winners from union activities, unlike high-skill workers who are smaller winners. However, unions also affect income distribution through job security, training programs, and social safety nets—not just wage improvements. Knowledge of the big picture also suggests that falling unionization only compounds income inequality, which underscores the necessity for policy measures that ensure healthy labour markets and facilitate effective workers’ organization and bargaining. Stronger democratic institutions and high bargaining power for labour unions enhance income distribution, proving the research. This insight is particularly important for policymakers interested in restraining income inequality through strengthened labour rights and collective bargaining. |
| Supervisor | Bárány L. Zsófia |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2024/binati_jacopo.pdf |
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