Rebellion against Reason? A Study of Expressive Choice and Strikes
AbstractIn this paper we challenge the conventional view that strikes are caused by asymmetric information regarding firm profitability such that union members are uninformed. Instead, we build an expressive model of strikes where the perception of unfairness provides the expressive benenifit of voting for a strike. The model predicts that larger union size increases both wage offers and the incidence of strikes. Furthermore, while asymmetric information is still important in causing strikes, we find that it is the employer who is not fully informed about the level of emotionality within the union, thereby contributing to strike incidence. An empirical test using UK data provides support for the predictions. In particular, union size has a positive effect on the incidence of strikes and other industrial actions even when asymmetric information regarding profitability is controlled for.
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Bibliographic InfoPaper provided by University of Strathclyde Business School, Department of Economics in its series Working Papers with number 1205.
Length: 25 pages
Date of creation: Jun 2012
Date of revision:
Publication status: Published
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More information through EDIRC
strikes; fairness; expressive voting;
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 N. Brunnschweiler & Colin Jennings & Ian A. MacKenzie, 2012. "Rebellion against Reason? A Study of Expressive Choice and Strikes," Working Paper Series 13012, Department of Economics, Norwegian University of Science and Technology.
- 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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