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The Laws of Unintended Consequence: The Effect of Labour Legislation on Wages and Strikes

Author

Listed:
  • Benjamin Dachis

    (C.D. Howe Institute)

  • Robert Hebdon

    (McGill University)

Abstract

When politicians consider intervening in labour disputes, they should also consider the long-term, potentially unintended results of such action. In this study, the authors investigate the lessons from previous government legislative interventions, whether through compulsory arbitration, “back-to-work” legislation or bans on replacement workers during strikes, and find these actions have unintended results that give reason for sober second thought.

Suggested Citation

  • Benjamin Dachis & Robert Hebdon, 2010. "The Laws of Unintended Consequence: The Effect of Labour Legislation on Wages and Strikes," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 304, June.
  • Handle: RePEc:cdh:commen:304
    as

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    File URL: https://www.cdhowe.org/public-policy-research/laws-unintended-consequence-effect-labour-legislation-wages-and-strikes
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    References listed on IDEAS

    as
    1. William B.P. Robson & Colin Busby, 2010. "Freeing up Food: The Ongoing Cost, and Potential Reform, of Supply Management," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 128, April.
    2. David Johnson, 2007. "School Grades: Identifying Alberta’s Best Public Schools," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 104, September.
    3. Philippe Bergevin, 2010. "Change is in the Cards: Competition in the Canadian Debit Card Market," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 125, February.
    4. Michael Parkin, 2010. "How Soon? How Fast? Interest Rates and Other Monetary Policy Decisions in 2010," e-briefs 92, C.D. Howe Institute.
    5. Pierre Siklos, 2010. "Taking Monetary Aggregates Seriously," e-briefs 94, C.D. Howe Institute.
    6. Robert Knox, 2010. "Who Can Work Where: Reducing Barriers to Labour Mobility in Canada," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 131, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Michele Campolieti & Robert Hebdon & Benjamin Dachis, 2016. "Collective Bargaining in the Canadian Public Sector, 1978–2008: The Consequences of Restraint and Structural Change," British Journal of Industrial Relations, London School of Economics, vol. 54(1), pages 192-213, March.
    2. Stuart Landon & Constance Smith, 2010. "Energy Prices and Alberta Government Revenue Volatility," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 313, November.
    3. Landeo, Claudia & Nikitin, Maxim, 2015. "Effective Labor Relations Laws and Social Welfare," Working Papers 2015-11, University of Alberta, Department of Economics.

    More about this item

    Keywords

    Economic Growth and Innovation; Canadian federal and provincial governments; labour relations; compulsory arbitration; back-to-work legislation;

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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