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Unions, Bargaining and Strikes

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Abstract

Labor disputes are an intriguing feature of the landscape of industrialized economies. Economists have had a long-standing interest in formulating a framework for understanding and analyzing labor disputes. The development of noncooperative bargaining theory provided the tools for a theory of collective bargaining and labor disputes. A general aim of this theoretical development is to inform policy makers of the efficiency and equity effects associated with different labor laws and institutions that govern and shape the collective bargaining process. While this new literature is still evolving, it can already offer many insights into the interplay between policy and the bargaining process. In this chapter, we will provide a sketch of this new collective bargaining theory and illustrate its ability to aid in policy analysis. We will also relate the predictions of the model to existing empirical findings in the literature.

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File URL: http://www.cramton.umd.edu/papers2000-2004/cramton-tracy-unions-bargaining-and-strikes.pdf
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Bibliographic Info

Paper provided by University of Maryland, Department of Economics - Peter Cramton in its series Papers of Peter Cramton with number 02ubs.

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Length: 38 pages
Date of creation: 2003
Date of revision: 05 Sep 2002
Publication status: Published in John T. Addison and Claus Schnabel, eds., International Handbook of Trade Unions, Cheltenham, UK: Edward Elgar, Chapter 4, 86-117, 2003.
Handle: RePEc:pcc:pccumd:02ubs

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Keywords: Unions; Bargaining; Strikes; Collective Bargaining;

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References

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  1. Tracy, Joseph S, 1986. "An Investigation into the Determinants of U.S. Strike Activity," American Economic Review, American Economic Association, American Economic Association, vol. 76(3), pages 423-36, June.
  2. Peter Cramton & Joseph S. Tracy, 1992. "Strikes and Holdouts in Wage Bargaining: Theory and Data," Papers of Peter Cramton, University of Maryland, Department of Economics - Peter Cramton 92aer, University of Maryland, Department of Economics - Peter Cramton, revised 09 Jun 1998.
  3. Peter Cramton & Joseph S. Tracy, 1994. "The Determinants of U.S. Labor Disputes," Papers of Peter Cramton, University of Maryland, Department of Economics - Peter Cramton 94jole, University of Maryland, Department of Economics - Peter Cramton, revised 09 Jun 1998.
  4. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, Econometric Society, vol. 50(1), pages 97-109, January.
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Cited by:
  1. Sergi Jiménez-Martín & Jaume Garcia, 2010. "Initial offers and outcomes in wage bargaining: who wins?," Empirical Economics, Springer, Springer, vol. 39(3), pages 815-846, December.
  2. Addison, John T. & Teixeira, Paulino, 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).
  3. Paul J. Devereux & Robert A. Hart, 2011. "A Good Time to Stay Out? Strikes and the Business Cycle," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 49(Supplemen), pages s70-s92, 06.
  4. Uwe Jirjahn & Jens Mohrenweiser & Uschi Backes-Gellner, 2009. "Works Councils and Learning: On the Dynamic Dimension of Codetermination," Working Papers, University of Zurich, Institute for Strategy and Business Economics (ISU) 0116, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Nov 2010.
  5. 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, University of Toronto Press, vol. 35(1), pages 99-120, March.
  6. Mauleon, Ana & Vannetelbosch, Vincent, 2010. "Market integration and strike activity," Journal of International Economics, Elsevier, Elsevier, vol. 81(1), pages 154-161, May.
  7. MAULEON, Ana & VANNETELBOSCH, Vincent & VERGARI, Cecilia, 2010. "Unions' relative concerns and strikes in wage bargaining," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2010076, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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