Structural Change and Economic Dynamics, 80, 2026
Olivier Blanchard’s textbook and the leading figures of the mainstream school of thought argue that strikes only lead to inflation and unemployment, without improving workers’ real wages and living conditions. But the empirical evidence tells a different story. The decline in strikes is at the root of the drop in labor income in Western Europe. Article by Paolo Angelone, Emiliano Brancaccio, Rorita Canale, and Fabiana De Cristofaro.