Has the EMU reduced wage growth and unemployment? Testing a model of trade union behavior

► We test how the introduction of the EMU affected labor market outcomes. ► We use a difference-in-differences approach comparing EMU to non-EMU countries. ► We find weak evidence for increased business cycle amplitudes within the EMU. ► We do not find a significant effect of EMU on wage growth. ► We do not find a significant effect of EMU on unemployment.