Influence of Labour Unions on Economic Growth in EU-15 Countries

This thesis analyses a relationship between the trade union density and the growth rate in 10 European countries in years 1960-2010. Using VAR models and Granger causality testing, the outcomes show a cauzality only in case of Italy where the trade union density responds to changes in economic growth rate. In case of other countries there are several signs of reactions to economic impulses, especially during years of crisis, yet not enough significant. The theoretical part introduces reader into the historical background of this relationship observed by many authors, i. e. it defines the labour market viewed from two perspectives, explains the origin and existing models of labour unions and finally, it shows on empirical studies the economic consequences of the influence of labour unions and their presence on the labour market. JEL classification: J51, J8