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The Effect of Settlement Stage on Negotiated Wage Settlements in Canada

Author

Listed:
  • D. A. L. Auld
  • L. N. Christofides
  • R. Swidinsky
  • D. A. Wilton

Abstract

This paper analyzes the effect of the particular stage of wage settlement on the negotiated wage increase, using micro data on Canadian labor contracts between 1966 and 1975. The sample data base was divided into direct first-stage bargaining, mediation-conciliation, and work stoppage/arbitration, and structural wage equations were estimated for each set of data. The results indicate that as negotiations move from direct bargaining to work stoppage, labor market conditions, measured by a vacancy rate, become less important as an explanatory variable and price catch-up becomes more important.

Suggested Citation

  • D. A. L. Auld & L. N. Christofides & R. Swidinsky & D. A. Wilton, 1981. "The Effect of Settlement Stage on Negotiated Wage Settlements in Canada," ILR Review, Cornell University, ILR School, vol. 34(2), pages 234-244, January.
    • Handle: RePEc:sae:ilrrev:v:34:y:1981:i:2:p:234-244
    DOI: 10.1177/001979398103400205
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    Cited by:

    1. Peter Cramton & Morley Gunderson & Joseph Tracy, 1999. "The Effect Of Collective Bargaining Legislation On Strikes And Wages," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 475-487, August.
    2. Ehrenberg, Ronald G. & Schwarz, Joshua L., 1987. "Public-sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 22, pages 1219-1260, Elsevier.
    3. Stephen Blumenfeld & Andres G. Victorio, 2012. "Union wages, strikes and profits," Applied Economics Letters, Taylor & Francis Journals, vol. 19(6), pages 517-520, April.
    4. Farmer, Amy & Tiefenthaler, Jill, 2001. "Conflict in divorce disputes: the determinants of pretrial settlement," International Review of Law and Economics, Elsevier, vol. 21(2), pages 157-180, June.

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