The Effect of Collective Bargaining Legislation on Strikes and Wages
Abstract
Using Canadian data on large, private-sector contract negotiations from January 1967 to March 1993, we find that wages and strikes are substantially influenced by labor policy. In particular, we find that prohibiting the use of replacement workers during strikes is associated with significantly higher wages, and more frequent and longer strikes. This is consistent with private information theories of bargaining. We estimate the welfare consequences of a ban on replacement workers, as well as other labor policies. Despite the higher dispute costs, union workers are better off with a ban on replacement workers. The higher wage more than compensates for the more frequent and longer strikes.Download Info
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5105.Length:
Date of creation: May 1995
Date of revision:
Handle: RePEc:nbr:nberwo:5105
Note: LS
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Keywords:Other versions of this item:
- 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.
- Peter Cramton & Morley Gunderson & Joseph Tracy, 1999. "The Effect of Collective Bargaining Legislation on Strikes and Wages," Papers of Peter Cramton 99res, University of Maryland, Department of Economics - Peter Cramton, revised 30 Jul 1998.
- J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
References
References listed on IDEASPlease 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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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Oechssler, Jörg & Roider, Andreas & Schmitz, Patrick W., 2009.
"Cooling-Off in Negotiations - Does It Work?,"
Working Papers
0463, University of Heidelberg, Department of Economics.
- Oechssler, Jörg & Roider, Andreas & Schmitz, Patrick W., 2008. "Cooling-Off in Negotiations - Does It Work?," Sonderforschungsbereich 504 Publications 08-06, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
- Oechssler, Jörg & Roider, Andreas & Schmitz, Patrick W., 2008. "Cooling-Off in Negotiations - Does It Work?," CEPR Discussion Papers 6807, C.E.P.R. Discussion Papers.
- Robert Rich & Joseph Tracy, 2000.
"Uncertainty and Labor Contract Durations,"
NBER Working Papers
7731, National Bureau of Economic Research, Inc.
- Robert Rich & Joseph Tracy, 2004. "Uncertainty and Labor Contract Durations," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 270-287, February.
- Robert Rich & Joe Tracy, 2000. "Uncertainty and labor contract durations," Staff Reports 106, Federal Reserve Bank of New York.
- Goerke, Laszlo & Schnabel, Claus, 2002. "On strike insurance," Discussion Papers 12, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- Peter Cramton & Joseph Tracy, 2003. "Unions, Bargaining and Strikes," Papers of Peter Cramton 02ubs, University of Maryland, Department of Economics - Peter Cramton, revised 05 Sep 2002.
- Michael Huberman & Denise Young, 2000. "Hope against Hope: Persistent Canadian Unions in the Interwar Years," CIRANO Working Papers 2000s-28, CIRANO.
- Sergi Jiménez-Martín & Jaume Garcia, 2010.
"Initial offers and outcomes in wage bargaining: who wins?,"
Empirical Economics,
Springer, vol. 39(3), pages 815-846, December.
- Jaume Garcia, & Sergi Jiménez-Martín, 2007. "Initial Offers and Outcomes in Wage Barganing: Who Wins?," Working Papers 2007-22, FEDEA.
- Budd, J.W., 1995.
"The Effect of Strike Replacement Legislation of Employment,"
Papers
95-04, Minnesota - Industrial Relations Center.
- Budd, John W., 2000. "The effect of strike replacement legislation on employment," Labour Economics, Elsevier, vol. 7(2), pages 225-247, March.
- Paul Duffy & Susan Johnson, 2009. "The Impact of Anti-Temporary Replacement Legislation on Work Stoppages: Empirical Evidence from Canada," Canadian Public Policy, University of Toronto Press, vol. 35(1), pages 99-120, March.
- Peter C. Cramton & Joseph S. Tracy, 1995.
"The Use of Replacement Workers in Union Contract Negotiations: The U.S. Experience, 1980-1989,"
NBER Working Papers
5106, National Bureau of Economic Research, Inc.
- Cramton, Peter & Tracy, Joseph, 1998. "The Use of Replacement Workers in Union Contract Negotiations: The U.S. Experience, 1980-1989," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 667-701, October.
- Peter Cramton & Joseph S. Tracy, 1998. "The Use of Replacement Workers in Union Contract Negotiations: The U.S. Experience, 1980-1989," Papers of Peter Cramton 98jole, University of Maryland, Department of Economics - Peter Cramton, revised 09 Jun 1998.
- Carlos Diaz-Moreno & Jose E. Galdon-Sanchez, 2000. "Collective Bargaining under Complete Information," STICERD - Theoretical Economics Paper Series 401, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Rupayan Pal & Bibhas Saha, 2008. "Union-oligopoly bargaining and entry deterrence: a reassessment of limit pricing," Journal of Economics, Springer, vol. 95(2), pages 121-147, November.
- Kai-Uwe Kuuhn & A. Jorge Padilla, 2002. "Union Power, Replacement and Labour Market Dynamics," Economic Journal, Royal Economic Society, vol. 112(479), pages 317-343, April.
- John Budd & Yijiang Wang, . "Labor Policy and Investment," Working Papers 0502, Human Resources and Labor Studies, University of Minnesota (Twin Cities Campus).
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