The impact of organized labor on public employment: A comparative analysis

This paper examines the political economy of public employment, specifically the impact of labor unions on public employment across 20 OECD nations during the 1965–1983 period. A theoretical paradigm based on exchange theory is used to explain the rationale for organized labor’s role in public employment. A model is then presented and tested to explain variation in public employment levels across the 20 nations. The results of the analyses support the central hypothesis that labor union power is positively correlated with public employment. Following the data analysis, the conclusions and implications of the findings are discussed as they pertain to the political economy in advanced industrial democracies.