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The effects of airline strikes on struck and nonstruck carriers

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Author Info

  • Richard A. DeFusco
  • Scott M. Fuess
  • Jr

Abstract

This study provides new evidence on the industrywide impact of strikes by investigating how strikes have affected the values of struck and nonstruck airlines. Using stock market data for the years 1963-86, the authors show that most strikes adversely affected the value of struck airlines' stock but enhanced the stock value of nonstruck carriers. The results also show that strikes before October 1978, which marked the end of strict regulation of the industry and of the employers' mutual aid pact, had some effects different from those of strikes after that date. (Abstract courtesy JSTOR.)

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Bibliographic Info

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

Volume (Year): 44 (1991)
Issue (Month): 2 (January)
Pages: 324-333

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Handle: RePEc:ilr:articl:v:44:y:1991:i:2:p:324-333

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Cited by:
  1. Martin B. Schmidt & David J. Berri, 2004. "The Impact of Labor Strikes on Consumer Demand: An Application to Professional Sports," American Economic Review, American Economic Association, American Economic Association, vol. 94(1), pages 344-357, March.
  2. Jonathan Gruber & Samuel A. Kleiner, 2012. "Do Strikes Kill? Evidence from New York State," American Economic Journal: Economic Policy, American Economic Association, American Economic Association, vol. 4(1), pages 127-57, February.
  3. James McDonald & Harry Bloch, 1999. "The Spillover Effects of Industrial Action on Firm Profitability," Review of Industrial Organization, Springer, Springer, vol. 15(2), pages 183-200, September.

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