Abstract:

The paper suggests a new methodological approach to assessing the effectiveness of social dialogue (SD) using taxonomic analysis. The assessment is based on the indices that comprehensively characterise the observance of decent work standards and other aspects of social and employment relations that belong to the field of stakeholder dialogue within the social sphere: cooperation in labour-employer relations; flexibility of wage determination (as part of the Global Competitiveness Indicators), as well as labour freedom (as an attribute of the Index of Economic Freedom). The calculation of a taxonomic indicator of the effectiveness of social dialogue in relation to individual social and economic outcomes of European countries (GDP per capita and average monthly salary relative to the EU average) confirms that in most countries developed social dialogue based on cooperation and mutual interest has a significant impact on GDP formation and, consequently, a high share of pay in added value, which is the basis for effective material incentives in the form of wages. At the same time, in terms of wage flexibility and the regulatory framework of a country's labour market as a whole, so far these factors are unrelated to economic success and confirm that many EU countries still have active state regulation models of labour markets. Although this condition does not impede economic development, it is a sign of one party's dominance in the labour market of many countries, and thus contradicts the principles of building an effective SD.