Organizational Change and Hysteresis in British Manufacturing Industry: A Perspective from the Donovan Commission Report
Labor productivity in British manufacturing industry rose significantly during the severe recession of the early 1980s, contrary to historical and international parallels. Furthermore, labor productivity continued to rise during the rest of the decade despite the return of output to its pre-1980 level. The author explains these stylized facts by analyzing wage-work rule negotiations as a three-person noncooperative bargaining game in which workers with different skills negotiate independently. This model attempts to capture the insights of a Royal Commission on industrial relations. The author also argues that this explanation of the stylized facts is consistent with the available evidence. Copyright 1995 by The London School of Economics and Political Science.
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Volume (Year): 62 (1995)
Issue (Month): 248 (November)
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