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Do Strikes Pay?

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Author Info

  • P Ingram
  • David Metcalf
  • Jonathan Wadsworth

Abstract

One-in-forty manufacturing settlements involved a strike during the 1980s. Strike days lost were equivalent to half a day for each worker in manufacturing. On average, for the decade as a whole, real pay increases where there was a strike were 0,7 per cent a year higher than settlements without a strike. Larger bargaining groups were more likely to achieve above average pay increases from strike action than were bargaining groups with fewer employees. After controlling for other influences on settlements a strike is found to boost the annual real pay rise by 0.3 per cent, equivalent to 45 pounds a year in 1991. The "average" strike in this sample lasts 11 days. Such a strike requires the wage gain for 30 years (with a discount rate of .06 or less) for the benefit to at least equal the cost. This hints that the average strike may not be a good investment for the union. But shorter strikes are more likely to be worthwhile.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0092.

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Date of creation: Aug 1992
Date of revision:
Handle: RePEc:cep:cepdps:dp0092

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Cited by:
  1. Bhattacharjee, Arnab & Bhattacharjee, Madhuchhanda, 2007. "Bayesian Analysis of Hazard Regression Models under Order Restrictions on Covariate Effects and Ageing," MPRA Paper 3938, University Library of Munich, Germany.
  2. Stephen Drinkwater & Peter Ingram, 2003. "Have industrial relations in the UK really improved?," School of Economics Discussion Papers 0903, School of Economics, University of Surrey.
  3. Bhattacharjee, A. & Samarjit Das, 2002. "Testing Proportionality in Duration Models with Respect to Continuous Covariates," Cambridge Working Papers in Economics 0220, Faculty of Economics, University of Cambridge.
  4. Lindberg, Henrik, 2011. "Industrial action in Sweden - a new pattern?," Ratio Working Papers 176, The Ratio Institute.

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