Rebellion against Reason? A Study of Expressive Choice and Strikes
AbstractIn this paper we challenge the conventional view that strikes are caused by asymmetric information regarding firm profitability such that union members are uninformed. Instead, we build an expressive model of strikes where the perception of unfairness provides the expressive benefit of voting for a strike. The model predicts that larger union size increases both wage offers and the incidence of strikes. Furthermore, while asymmetric information is still important in causing strikes, we find that it is the employer who is not fully informed about the level of emotionality within the union, thereby contributing to strike incidence. An empirical test using UK data provides support for the predictions. In particular, union size has a positive effect on the incidence of strikes and other industrial actions even when asymmetric information regarding profitability is controlled for.
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Bibliographic InfoPaper provided by CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich in its series CER-ETH Economics working paper series with number 12/162.
Length: 28 pages
Date of creation: Jun 2012
Date of revision:
strikes; expressive voting;
Other versions of this item:
- Christa N. Brunnschweiler & Colin Jennings & Ian A. MacKenzie, 2012. "Rebellion against Reason? A Study of Expressive Choice and Strikes," Working Paper Series 13012, Department of Economics, Norwegian University of Science and Technology.
- Christa Brunnschweiler & Colin Jennings & Ian MacKenzie, 2012. "Rebellion against Reason? A Study of Expressive Choice and Strikes," Working Papers 1205, University of Strathclyde Business School, Department of Economics.
- D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
- NEP-BEC-2012-06-25 (Business Economics)
- NEP-CDM-2012-06-25 (Collective Decision-Making)
- NEP-LAB-2012-06-25 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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