Cost-of-living clauses in union contracts: Determinants and effects

This file is part of IDEAS, which uses RePEc data

Cost-of-living clauses in union contracts: Determinants and effects

Author Info

Wallace Hendricks
Larry M. Kahn

Additional information is available for the following registered author(s):

Lawrence Kahn

Abstract

This study investigates, for the period 1969 - 81, the determinants of the incidence and strength of cost-of-living adjustment (COLA) clauses in U.S. manufacturing and the effect of those clauses on wage inflation. The sample includes approximately 5,570 union contracts in over 2,600 bargaining relationships. The authors find that both union bargaining power and inflation uncertainty positively affected the probability that a COLA clause was adopted as well as the strength of the clause adopted. Negatively influencing the incidence and strength of COLA clauses during the period studied were unanticipated changes in an industry's prices. The authors also find evidence that wage inflation was greater under contracts with uncapped COLAs than under all other contracts, a result that also was positively influenced by the amount of unanticipated inflation. From these results, the authors suggest a number of possible trends in the use and effects of COLA clauses. (Abstract courtesy JSTOR.)

Download Info
To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 36 (1983)
Issue (Month): 3 (April)
Pages: 447-460
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:ilr:articl:v:36:y:1983:i:3:p:447-460

Contact details of provider:
Fax: 607-255-4496
Web page: http://www.ilr.cornell.edu/ilrreview/
More information through EDIRC

Order Information:
Postal: 520 Ives Hall, Cornell Univ., Ithaca, NY 14853-3901
Email:
Web: http://digitalcommons.ilr.cornell.edu/ilrreview/

For technical questions regarding this item, or to correct its listing, contact: (Brian Keeling).

Related research
Keywords:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Robert Rich & Joseph Tracy, 2000. "Uncertainty and Labor Contract Durations," NBER Working Papers 7731, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Robert Rich & Joe Tracy, 2000. "Uncertainty and labor contract durations," Staff Reports 106, Federal Reserve Bank of New York. [Downloadable!]
- Robert Rich & Joseph Tracy, 2004. "Uncertainty and Labor Contract Durations," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 270-287, 01. [Downloadable!] (restricted)
Louis Christofides & Amy Chen Peng, 2006. "Major Provisions of Labour Contracts and their Theoretical Coherence," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
Josep A. Tribó, 2005. "An analysis of the length of labour and financial contracts: a study for Spain," Applied Economics, Taylor and Francis Journals, vol. 37(8), pages 905-916, May. [Downloadable!] (restricted)
Christofides, L. & Peng, A., 2007. "Real Wage Chronologies," Working Papers 2007-7, University of Guelph, Department of Economics. [Downloadable!]
Other versions:
- Louis Christofides & Amy Chen Peng, 2007. "Real Wage Chronologies," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
Fregert, Klas & Jonung, Lars, 1998. "Monetary Regimes And Endogenous Wage Contracts: Sweden 1908-1995," Working Papers 1998:3, Lund University, Department of Economics, revised 21 Apr 1999. [Downloadable!]

Statistics

Access and download statistics

Did you know? IDEAS also indexes book chapters.

This page was last updated on 2008-7-30.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.