Vol. 8 No. 2 (2023): March-April
Original Articles

INCLUSIVE GROWTH: EXAMINING THE POSITIVE OUTCOMES OF LABOR UNION MEMBERSHIP IN BENIN

Jean-Pierre Houssouvi Agbodjinou
Faculty of Economics and Management (FASEG), University of Abomey-Calavi (UAC)
Marie-Louise Kossiwe Yékpé
Faculty of Economics and Management (FASEG), University of Abomey-Calavi (UAC)
François-Xavier Sègnonvi Hounsa
Faculty of Economics and Management (FASEG), University of Abomey-Calavi (UAC)

Published 2023-09-20

Keywords

  • Labor Market,
  • Trade Unions,
  • Wage Inequality,
  • Worker Well-being,
  • Collective Bargaining

How to Cite

Jean-Pierre, H. A., Marie-Louise, K. Y., & François-Xavier , S. H. (2023). INCLUSIVE GROWTH: EXAMINING THE POSITIVE OUTCOMES OF LABOR UNION MEMBERSHIP IN BENIN. Top Academic Journal of Economics and Statistics, 8(2), 9–30. Retrieved from http://topjournals.org/index.php/TAJES/article/view/606

Abstract

The labor market's functionality, with a specific focus on the pivotal role of institutions like trade unions, has garnered significant attention within the context of developed nations in recent decades. This research investigates the impact of trade unions on wage disparities, drawing inspiration from the foundational studies of Dunlop (1944), Ross (1948), and Lewis (1963). It is widely acknowledged that trade unions play a vital role in enhancing the earnings of their members, but this comes with the potential consequence of limiting overall wage inequality. The primary objective of trade unions revolves around enhancing the well-being of their members by advocating for higher wages, improved working conditions, and increased job security (Manda et al., 2005). To accomplish these objectives, trade unions employ an array of legal tactics, ranging from collaborative negotiations with employers and public authorities to resorting to strike actions.

References

  1. Borland, J. (1996). Union effects on earnings dispersion in Australia. British Journal of Industrial Relations, vol. 34, no 2, p. 237-248.
  2. Bryson, A. (2014), Union wage effects, IZA World of Labor.
  3. Budd, J. W., Chi, W., Wang, Y., & Xie, Q. (2014). What do unions in China do? Provincial-level evidence on wages, employment, productivity, and economic output. Journal of Labor Research, vol. 35, no 2, p. 185204.
  4. Card, D., Lemieux, T., & Riddell, W. C. (2004). Unions and wage inequality. Journal of Labor Research, vol. 25, no 4, p. 519-559.
  5. Christian, M. S., Garza, A. S., & Slaughter, J. E. (2011). Work engagement: A quantitative review and test of its relations with task and contextual performance. Personnel psychology, vol. 64, no 1, p. 89-136.
  6. Coutrot, T. (1996). Relations sociales et performance économique : Une première analyse empirique du cas français : Les relations sociales en entreprise. Travail et emploi, vol. 66, p. 39-58.
  7. Danish Trade Union Development Agency (2021), Labor Market Profile Benin – 2021/2022, Labor Market Profile Benin – 2021/2022 (ulandssekretariatet.dk).
  8. Friedrich Ebert Stiftung (2015), Etude sur le paysage syndical au Bénin, p. 90, ISBN 978-99919-0-639-3.
  9. Friedrich Ebert Stiftung (2019), Analyse de la dynamique de l’économie informelle au Bénin, p. 47, ISBN : 97899982-55-28-9.
  10. Freeman, R. B. (1993). Labor markets and institutions in economic development. The American Economic Review, vol. 83, no 2, p. 403-408.
  11. Freeman, R. B. (2010). Labor regulations, unions, and social protection in developing countries: Market distortions or efficient institutions? Handbook of development economics, vol. 5, p. 4657-4702.
  12. Freeman, R. B., & Lazear, E. P. (1995). An economic analysis of works councils. In Works councils: Consultation, representation, and cooperation in industrial relations. University of Chicago Press, p. 27-52.
  13. Freeman, R. B., & Medoff, J. L. (1984). What do unions do. Indus. & Lab. Rel. Rev., vol. 38, p. 244.
  14. Ge, Y. (2014). Do Chinese unions have “real” effects on employee compensation? Contemporary Economic Policy, vol. 32, no 1, p. 187-202.
  15. Guirkinger, C. and Boucher, S. R. (2008). Credit constraints and productivity in Peruvian agriculture. Agricultural Economics, vol. 39, no 3, p. 295 308.
  16. Kerr, A., & Wittenberg, M. (2021). Union wage premia and wage inequality in South Africa. Economic Modelling, vol. 97, p. 255-271.
  17. Keune, M. (2018). Opportunity or threat? How trade union power and preferences shape occupational pensions. Social Policy & Administration, vol. 52, no 2, p. 463-476.
  18. Laroche, P. (2004). Présence syndicale et performance financière des entreprises : une analyse statistique sur le cas français. Finance Contrôle Stratégie, vol. 7, no 3, p. 117-146.
  19. Lee, L. (1978). Unionism and wage rates: A simultaneous equations model with qualitative and limited dependent variables. International Economic Review, vol. 19 no 2, p. 415-433.
  20. Lee, W. S. (2013). Propensity score matching and variations on the balancing test. Empirical economics, vol. 44, no 1, p. 47-80.
  21. Lewis, H. G. (1963). Unionism and relative wages in the United States: an empirical inquiry. Chicago: University of Chicago Press.
  22. Liu, J., Xing, C., & Ge, Y. (2020). Does union membership reduce gender earnings differentials? Evidence from employer–employee matched data in China. Pacific Economic Review, vol. 25, no 1, p. 102-117.
  23. Lokshin, M. & Sajaia, Z. (2004). Maximum likelihood estimation of endogenous switching regression models. The Stata Journal, vol. 4, no 3, p. 282-289.
  24. Lu, Y., Tao, Z., & Wang, Y. (2010). Union effects on performance and employment relations: Evidence from China. China Economic Review, vol. 21, no 1, p. 202-210.
  25. Maddala, G. (1983). Limited-dependant and Qualitative Variables in Econometrics. Cambridge: Cambridge University Press.
  26. Maleka, M. J., Schultz, C. M., van Hoek, L., Paul-Dachapalli, L., & Ragadu, S. C. (2021). Union Membership as a Moderator in the Relationship Between Living Wage, Job Satisfaction and Employee Engagement. The Indian Journal of Labor Economics, vol. 64, no 3, p. 621-640.
  27. Manda, D. K., Bigsten, A., & Mwabu, G. (2005). Trade union membership and earnings in Kenyan manufacturing firms. Applied Economics, vol. 37, no 15, p. 1693-1704.
  28. Manning, A. (2013). Monopsony in motion ». In Monopsony in Motion, Princeton University Press.
  29. Nahm, D., Dobbie, M., & MacMillan, C. (2017). Union wage effects in Australia: An endogenous switching approach ». Applied Economics, vol. 49, no 39, p. 3927-3942.
  30. Najem, E. & Paquet, R. (2007). L’impact syndical sur l’entreprise canadienne et sa main-d’œuvre. Revue internationale sur le travail et la société, vol. 5, no 3, p. 52–73.
  31. Ngom, A. (2021). Trade Unionism and Enterprise Performance in Senegal. AERC Research Paper, vol. 420, p. 32.
  32. Périsse, M. (2014). Le droit du travail et les migrants ruraux : instituer un nouveau salariat en Chine. Revue de la régulation, Capitalisme, institutions, pouvoirs, vol. 15.
  33. Sandbrook, R. (1975). Proletarians and African capitalism: the Kenyan case, 1960-1972. Cambridge: Cambridge University Press, vol. 21.
  34. Schmidt, T. D. (2021). Local institutions, union wage effects and native–foreign wage gaps. Regional Studies, p. 114.
  35. Torm, N. (2018). Does union membership pay off? Evidence from Vietnamese SMEs. Micro, small, and medium enterprises in Vietnam. p. 230-252.
  36. Yedomon, B. (2016). Travail informel au Bénin : Expositions professionnelles et conséquences sanitaires chez les forgerons-ferblantiers à Cotonou (Doctoral dissertation, Université de Limoges) ».
  37. Zhang, Y., Chen, J., & Wong, P. (2011). Effect of trade unions on industrial labor income in China. Asian Politics & Policy, vol. 3 no 1, p. 95-114.