Question: 2 . If we look at the data on union bargaining coverage and unemployment in Figure 9 . 2 3 above, it does not seem
If we look at the data on union bargaining coverage and unemployment in Figure above, it does not seem to be the case that unemployment is higher in countries where union bargains are important in wagesetting. Austria, with almost all employees covered by union wage bargains, has a lower unemployment rate averaged over 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 wagesetting curve to the new bargained wagesetting curve must not be the entire story.
How can this be explained? What else may be happening?
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