Determinants of contract duration in collective bargaining agreements

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Determinants of contract duration in collective bargaining agreements

Author Info

Kevin J. Murphy

Abstract

The author develops a model incorporating variables that previous studies have hypothesized as determinants of labor contract duration, then empirically tests the model using a data set containing bargaining pair-specific, industry-specific, and union-specific variables on 373 contracts signed over the period 1977-87. Three findings, all consistent with the model, are that the rate of wage change in a contract is positively related to the contract's duration; contracts containing cost-of-living adjustments (COLAs) tend to be considerably longer in duration than contracts without COLAs; and over the period studied, there was a substantial increase in average contract duration, even with controls for many economic factors. (Abstract courtesy JSTOR.)

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

Volume (Year): 45 (1992)
Issue (Month): 2 (January)
Pages: 352-365
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Handle: RePEc:ilr:articl:v:45:y:1992:i:2:p:352-365

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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 & Chen Peng, 2003. "Contract Duration and Indexation in a Period of Real and Nominal Uncertainty," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
Other versions:
- Christofides, L. & Peng, C., 2004. "Contract Duration and Indexation in a Period of Real and Nominal Uncertainty," Working Papers 2004-3, University of Guelph, Department of Economics.
- Christofides, Louis N. & Peng, Chen, 2006. "Contract duration and indexation in a period of real and nominal uncertainty," Labour Economics, Elsevier, vol. 13(1), pages 61-86, February. [Downloadable!] (restricted)
Tommaso Nannicini, 2004. "Temporary Workers: How Temporary Are They?," Economics Working Papers ECO2004/23, European University Institute. [Downloadable!]
Louis Christofides & Amy Chen Peng, 2006. "Major Provisions of Labour Contracts and their Theoretical Coherence," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
Louis N. Christofides & Amy Peng, 2007. "Real Wage Chronologies," Working Papers 0707, 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 Group Munich. [Downloadable!]
Leif Danziger, 2006. "Extension of Labor Contracts and Optimal Backpay," IZA Discussion Papers 2366, Institute for the Study of Labor (IZA). [Downloadable!]
Other versions:
- Danziger, Leif, 2008. "Extension of labor contracts and optimal backpay," Labour Economics, Elsevier, vol. 15(1), pages 18-36, February. [Downloadable!] (restricted)

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