Using Canadian data on large, private-sector contract negotiations from January 1967 to March 1993, we find that strikes and wages are substantially influenced by labor policy. The data indicate that conciliation policies have largely been ineffective in reducing strike costs. In contrast, general contract reopener provisions appear to make both unions and employers better off by reducing negotiation costs without systematically affecting wage settlements. Legislation banning the use of replacement workers appears to lead to significantly higher negotiation costs and redistribution of quasi-rents from employers to unions.
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Paper provided by University of Maryland, Department of Economics - Peter Cramton in its series Papers of Peter Cramton with number
99res.
Length: 38 pages Date of creation: 1999 Date of revision:
30 Jul 1998 Publication status: Published in Review of Economics and Statistics, 81:3, 1999, pages 475-487. Handle: RePEc:pcc:pccumd:99res
Contact details of provider: Postal: Economics Department, University of Maryland, College Park, MD 20742-7211 Phone: (202) 318-0520 Fax: (202) 318-0520 Web page: http://www.cramton.umd.edu
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John Budd & Yijiang Wang, .
"Labor Policy and Investment,"
Working Papers
0502, Industrial Relations Center, University of Minnesota (Twin Cities Campus).
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