Migration and trade union rights

Abstract

Summary We study in this paper both theoretically and empirically the influence of trade union rights in origin countries on bilateral migration flows. Theoretically, trade union rights are supposed to increase the bargaining power of workers. Alternatively, it may benefit only to formal workers if these rights are not applied in the informal sector. We then propose different alternative indexes measuring trade union rights. We find that, all things being equal, more trade union rights tend to be associated with less migration of low-skill and high-skilled workers. Effects are not significant for intermediate skill level. Lastly, we show that social tensions may have the opposite effect. If trade union rights are associated with more social instability, it may increase the level of migration. It emphasizes the importance of social dialogue.