Onaran, Özlem ORCID: 0000-0002-6345-9922 , Guschanski, Alexander ORCID: 0000-0002-7818-8264 and Rabensteiner, Thomas ORCID: 0000-0001-9289-3579 (2024) Business case for a New Deal for workers: what is good for workers is good for the economy. [Working Paper]

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Abstract

If the collective bargaining coverage in the UK increases from where it is in 2023 (30%) by 8%-points to 38% (where it was in 1996 when comparable data started), by fully implementing a New Deal for Workers, private investment as a ratio to GDP would increase by 0.3%-points. To put it differently, increasing collective bargaining coverage by 1%-point means 285 thousand more workers will benefit from the outcome of the collective bargaining agreement between the trade union and the employer. This will lead to a £9.2bn increase in the UK GDP (in 2023 prices). Increasing collective bargaining coverage by 1 million workers (3.5%-point increase) will lead to a £32bn increase in the UK GDP (in 2023 prices).

Item Type:	Working Paper
Uncontrolled Keywords:	wage share; collective bargaining; investment
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory J Political Science > JA Political science (General)
Faculty / School / Research Centre / Research Group:	Faculty of Business
Last Modified:	03 Jun 2024 12:07
URI:	http://gala.gre.ac.uk/id/eprint/47309

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