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European Journal of Industrial Relations
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Collective Bargaining and Poverty: A Cross-National Perspective

Robert Plasman

Université Libre de Bruxelles, Belgium

François Rycx

Université Libre de Bruxelles, Belgium, frycx{at}ulb.ac.be

A large and increasing number of studies examine the influence of collective bargaining systems on wage dispersion, but very few analyse their influence on poverty levels. Yet it would be a mistake to assume that the relationship between wage dispersion and poverty rates is straightforward: the evidence shows that in most industrialized countries, poverty is not primarily a problem of the working poor. This article addresses explicitly the relationship between collective bargaining systems and relative poverty rates in OECD countries. Empirical findings suggest that industrial relations systems have a significant impact upon poverty, not through any direct effect on wage dispersion, but from their relative impact on government spending on social security.

European Journal of Industrial Relations, Vol. 7, No. 2, 175-202 (2001)
DOI: 10.1177/095968010172005
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