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Employment Rents and the Incidence of Strikes

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  • Schor, Juliet B
  • Bowles, Samuel
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    Abstract

    A new measure of labor market tightness on workers' behavior--the employment rent--is modeled as a determinant of workplace conflict. An empirical estimate of the employment rent--workers' expected cost of job loss--is calculated. It is argued that the cost of job loss affects strike incidence. This relationship is tested by estimating an econometric model of strike incidence for the United States from 1955 to 1983. The cost of job loss is shown to explain a large percentage of the variation in strike incidence. The cost of job loss is a far superior explanatory variable than the unemployment rate, which is commonly used in strike models. Copyright 1987 by MIT Press.

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    Bibliographic Info

    Article provided by MIT Press in its journal Review of Economics & Statistics.

    Volume (Year): 69 (1987)
    Issue (Month): 4 (November)
    Pages: 584-92

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    Handle: RePEc:tpr:restat:v:69:y:1987:i:4:p:584-92

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    Web page: http://mitpress.mit.edu/journals/

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    Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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    Cited by:
    1. Carpenter, Jeffrey & Rudisill, McAndrew, 2003. "Fairness, escalation, deference, and spite: strategies used in labor-management bargaining experiments with outside options," Labour Economics, Elsevier, vol. 10(4), pages 427-442, August.
    2. Arjun Jayadev & Samuel Bowles, 2004. "Guard Labor: An Essay in Honor of Pranab Bardhan," Working Papers wp90, Political Economy Research Institute, University of Massachusetts at Amherst.
    3. Samuel Bowles & Herbert Gintis, 1993. "The Revenge of Homo Economicus: Contested Exchange and the Revival of Political Economy," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 83-102, Winter.
    4. Jayadev, Arjun & Bowles, Samuel, 2006. "Guard labor," Journal of Development Economics, Elsevier, vol. 79(2), pages 328-348, April.
    5. Bénédicte Reynaud, 1990. "Les modes de rémunération et le rapport salarial," Économie et Prévision, Programme National Persée, vol. 92(1), pages 1-14.

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