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The Use of Replacement Workers in Union Contract Negotiations: The U.S. Experience, 1980-1989

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Author Info
Peter C. Cramton
Joseph S. Tracy

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Abstract

It is argued in many circles that a structural change occurred in U.S. collective bargaining in the 1980s. We investigate the extent to which the hiring of replacement workers can account for this change. For a sample of over 300 major strikes since 1980, we estimate the likelihood of replacements being hired. We find that the risk of replacement declines during tight labor markets, and is lower for bargaining units with more experienced workers. We use the predicted replacement risk as an explanatory variable in a model of the union's choice between the strike and holdout threat. We find that strike usage decreases significantly as the predicted replacement risk increases. We estimate that a ban on the use of replacement workers would have increased strike incidence from 1982-1989 by 3 percentage points, a 30 percent increase.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5106.

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Date of creation: May 1995
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Handle: RePEc:nbr:nberwo:5106

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Find related papers by JEL classification:
J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

References listed on IDEAS
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  1. repec:fth:prinin:306 is not listed on IDEAS
  2. Daniel J. B. Mitchell, 1982. "Recent Union Contract Concessions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 13(1982-1), pages 165-204. [Downloadable!]
  3. Admati, Anat R & Perry, Motty, 1987. "Strategic Delay in Bargaining," Review of Economic Studies, Blackwell Publishing, vol. 54(3), pages 345-64, July. [Downloadable!] (restricted)
  4. Ann P. Bartel & Nachum Sicherman, 1999. "Technological Change and the Skill Acquisition of Young Workers," NBER Working Papers 5107, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Bartel, A.P. & Sicherman, N., 1995. "Technological Change and the Skill Acquisition of Young Workers," Papers 95-10, Columbia - Graduate School of Business.
  6. Gunderson, Morley & Melino, Angelo, 1990. "The Effects of Public Policy on Strike Duration," Journal of Labor Economics, University of Chicago Press, vol. 8(3), pages 295-316, July. [Downloadable!] (restricted)
  7. Steven G. Allen, 1996. "Technology and the Wage Structure," NBER Working Papers 5534, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Cramton, Peter C & Tracy, Joseph S, 1992. "Strikes and Holdouts in Wage Bargaining: Theory and Data," American Economic Review, American Economic Association, vol. 82(1), pages 100-121, March. [Downloadable!] (restricted)
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  9. Reder, Melvin W & Neumann, George R, 1980. "Conflict and Contract: The Case of Strikes," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 867-86, October. [Downloadable!] (restricted)
  10. Cynthia L. Gramm & John F. Schnell, 1994. "Some Empirical Effects Of Using Permanent Striker Replacements," Contemporary Economic Policy, Western Economic Association International, vol. 12(3), pages 122-133, 07. [Downloadable!] (restricted)
  11. Gunderson, Morley & Kervin, John & Reid, Frank, 1986. "Logit Estimates of Strike Incidence from Canadian Contract Data," Journal of Labor Economics, University of Chicago Press, vol. 4(2), pages 257-76, April. [Downloadable!] (restricted)
  12. Henry S. Farber & Alan B. Krueger, 1992. "Union Membership in the United States: The Decline Continues," NBER Working Papers 4216, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. 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. [Downloadable!] (restricted)
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  14. John F. Schnell & Cynthia L. Gramm, 1994. "The empirical relations between employers' striker replacement strategies and strike duration," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 47(2), pages 189-206, January.
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