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Strikes, Scabs and Tread Separations: Labor Strife and the Production of Defective Bridgestone/Firestone Tires

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Author Info
Krueger, Alan B. () (Princeton University, NBER and IZA Bonn)
Mas, Alexandre (Princeton University)

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Abstract

This paper provides a case study of the effect of labor relations on product quality. We consider whether a long, contentious strike and the hiring of replacement workers at Bridgestone/Firestone’s Decatur plant in the mid-1990s contributed to the production of defective tires. Using several independent data sources, and looking before and after the strike and across plants, we find that labor strife at the Decatur plant closely coincided with lower product quality. Monthly data suggest that defects were particularly high around the time concessions were demanded and when large numbers of replacement workers and returning strikers worked side by side.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 869.

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Length: 55 pages
Date of creation: Sep 2003
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Handle: RePEc:iza:izadps:dp869

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Related research
Keywords: labor relations product quality Bridgestone/Firestone strike

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Find related papers by JEL classification:
J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
M5 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics
M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration

References listed on IDEAS
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.:

  1. Morris M. Kleiner & Jonathan S. Leonard & Adam M. Pilarski, 2002. "How industrial relations affects plant performance: The case of commercial aircraft manufacturing," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 55(2), pages 195-218, January.
  2. Harry C. Katz & Thomas A. Kochan & Kenneth R. Gobeille, 1983. "Industrial relations performance, economic performance, and QWL programs: An interplant analysis," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 37(1), pages 3-17, October.
  3. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Julio J. Rotemberg, 2007. "Minimally altruistic wages and unemployment in a matching model," Working Papers 07-5, Federal Reserve Bank of Boston. [Downloadable!]
  2. Oliver Hart & John Moore, 2006. "Contracts as Reference Points," NBER Working Papers 12706, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. John T. Addison & Paulino Teixeira, 2006. "Does the Quality of Industrial Relations Matter for the Macro Economy? A Cross-Country Analysis Using Strikes Data," IZA Discussion Papers 1968, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Barry T. Hirsch, 2007. "Sluggish Institutions in a Dynamic World: Can Unions and Industrial Competition Coexist?," IZA Discussion Papers 2930, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Julio J. Rotemberg, 2008. "Minimally Altruistic Wages and Unemployment in a Matching Model," NBER Working Papers 13755, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Dohmen, Thomas J & Falk, Armin & Huffman, David & Sunde, Uwe, 2006. "Homo Reciprocans: Survey Evidence on Prevalence, Behaviour and Success," CEPR Discussion Papers 5789, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Robert S. Huckman & Jason Barro, 2005. "Cohort Turnover and Productivity: The July Phenomenon in Teaching Hospitals," NBER Working Papers 11182, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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