Question: 2 . If we look at the data on union bargaining coverage and unemployment in Figure 9 . 2 3 above, it does not seem

2. If we look at the data on union bargaining coverage and unemployment in Figure 9.23 above, it does not seem to be the case that unemployment is higher in countries where union bargains are important in wage-setting. Austria, with almost all employees covered by union wage bargains, has a lower unemployment rate (averaged over 20002014) than the US, where fewer than one in five workers are covered by union contracts. Spain and Poland both had massive unemployment over this period, but union coverage was very high in Spain and very low in Poland. So, the fact that unions can push up the wage-setting curve to the new bargained wage-setting curve must not be the entire story.
How can this be explained? What else may be happening?

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