Rebellion against Reason? A Study of Expressive Choice and Strikes
AbstractWe challenge the conventional view that strikes are caused by asymmetric information regarding firm profitability. We build an expressive model of strikes where punishing unfairness provides the expressive benefit of voting for a strike. The model predicts that larger union size increases wage offers and strike incidence. Also, although standard asymmetric information still counts, it is the employer who is not fully informed about the union's emotionality, thereby contributing to strikes. An empirical test using UK data supports the predictions. Larger union size is linked to more strikes and other industrial actions, even when controlling for standard asymmetric information.
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Bibliographic InfoPaper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 13012.
Length: 24 pages
Date of creation: 07 Jun 2012
Date of revision:
Other versions of this item:
- Christa N. Brunnschweiler & Colin Jennings & Ian A. MacKenzie, 2012. "Rebellion against Reason? A Study of Expressive Choice and Strikes," CER-ETH Economics working paper series 12/162, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- 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 Microeconomics; 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
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