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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

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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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Publisher Info
Article provided by ILR Review, ILR School, Cornell University 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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  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, vol. 94(1), pages 344-357, March. [Downloadable!]
  2. James McDonald & Harry Bloch, 1999. "The Spillover Effects of Industrial Action on Firm Profitability," Review of Industrial Organization, Springer, vol. 15(2), pages 183-200, September. [Downloadable!] (restricted)
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This page was last updated on 2009-11-23.


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