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Scab Labor

Author

Listed:
  • Dan Bernhardt

    (University of Illinois)

  • John Spicer

    (Europe Economics)

Abstract

This paper explores the political economy of unions, and the consequences this has for bargaining and strikes. We develop a very simple model to show that there are circumstances in which everyone, including striking workers, gains when some employees cross the picket line. We detail how strikes can emerge in equilibrium despite the absence of uncertainty, and how this strike outcome can Pareto dominate the outcome when scabbing is illegal, despite the fact that the strike destroys surplus. We also characterize when the firm might prefer to lock out those workers who would be strike breakers.

Suggested Citation

  • Dan Bernhardt & John Spicer, 1995. "Scab Labor," Working Paper 925, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:925
    as

    Download full text from publisher

    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_925.pdf
    File Function: First version 1995
    Download Restriction: no
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    More about this item

    Keywords

    lock-outs; strikes; scabs;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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