Does collective bargaining reduce health inequalities between labour market insiders and outsiders?

Abstract

Collective bargaining institutions are correlated with better population health. However, there are still major gaps in our understanding regarding the impact of collective bargaining on health inequalities, particularly between labour market 'insiders' and 'outsiders'. In this study, we investigate the effect of collective bargaining coverage on individuals' self-rated health, and whether the impact varies according to labour market status. We use four waves of the European Values Survey (1981-2018) and three-level nested random intercept models across 33 OECD and European countries (N = 66 301). We find that stronger and more inclusive collective bargaining institutions reduce health inequalities between the unemployed and the employed by disproportionately improving the health of the unemployed. This study implies that targeting the political institutions that shape the distribution of power and resources is important for reducing health inequalities.