This paper examines how union heterogeneity affects wage bargaining coordination. It finds that more unequal distribution of resources among unions inhibits the centralization of strike power within federations, challenging conventional assumptions about coordinated bargaining systems.
The author argues that fragmentation creates barriers to collective action efficiency—a key finding with implications for labor movement effectiveness across 15 OECD countries between 1950 and 2000.
Key Context: Social democratic economic models rely heavily on coordinated wage bargaining, yet its determinants remain poorly understood despite widespread attention.
Methodology: Using panel data covering 15 OECD democracies from 1950 to 2000, membership size as a proxy for resources, and logistic regression analysis.
The findings demonstrate that union centralization is significantly weakened in contexts of high resource inequality. This suggests political fragmentation may be more prevalent than previously acknowledged across Western European labor movements.
