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  • Reinterpreting social pacts: Theory and evidence

    Author(s)
    Colombo, Emilio
    Tirelli, Patrizio
    Visser, Jelle
    Griffith University Author(s)
    Tirelli, Patrizio
    Year published
    2014
    Metadata
    Show full item record
    Abstract
    We investigate the empirical determinants of social pacts over the 1970–2004 period. We adopt a political economy approach, showing that governments are more likely to sign a pact when the cost of a conflict with trade unions is relatively larger. Such a cost depends on macroeconomic variables and on measures of social conflict and union strength. These findings are remarkably stable across sub-periods, in apparent contrast with previous contributions that emphasised differences between first- and second-generation pacts. Our interpretation is that pacts were different across periods because the policy issues changed, but ...
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    We investigate the empirical determinants of social pacts over the 1970–2004 period. We adopt a political economy approach, showing that governments are more likely to sign a pact when the cost of a conflict with trade unions is relatively larger. Such a cost depends on macroeconomic variables and on measures of social conflict and union strength. These findings are remarkably stable across sub-periods, in apparent contrast with previous contributions that emphasised differences between first- and second-generation pacts. Our interpretation is that pacts were different across periods because the policy issues changed, but the incentives to seek union consensus did not.
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    Journal Title
    Journal of Comparative Economics
    Volume
    42
    Issue
    2
    DOI
    https://doi.org/10.1016/j.jce.2013.05.008
    Subject
    Applied economics
    Applied economics not elsewhere classified
    Other economics
    Publication URI
    http://hdl.handle.net/10072/336482
    Collection
    • Journal articles

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