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The Determinants and Extent of UAW Pattern Bargaining

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  • John W. Budd

Abstract

The author, using two new data sets covering UAW contract outcomes in a wide range of industries, estimates the degree to which the union's target settlement with a Big Three automaker was followed in subsequent settlements in the same bargaining round over the years 1955–79 and 1987–90. Using several different specifications and examining both wage levels and percent wage increases, he finds that target settlements had large, statistically significant spillover effects in all years, although the effects were considerably smaller in 1987–90 than in 1955–79. Bargaining unit size and industry had important influences on pattern-following in all years. Firm-specific financial health indicators had little influence on pattern-following in the earlier period, but an important influence in 1987–90.

Suggested Citation

  • John W. Budd, 1992. "The Determinants and Extent of UAW Pattern Bargaining," ILR Review, Cornell University, ILR School, vol. 45(3), pages 523-539, April.
    • Handle: RePEc:sae:ilrrev:v:45:y:1992:i:3:p:523-539
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    Cited by:

    1. Lindbeck, A & Snower, D-J, 1996. "Centralized Bargaining, Multi-Tasking, and Work Incentives," Papers 620, Stockholm - International Economic Studies.
    2. Kuhn, Peter & Gu, Wulong, 1998. "Centralization and strikes," Labour Economics, Elsevier, vol. 5(3), pages 243-265, September.
    3. Donna Brown & Peter Ingram & Jonathan Wadsworth, 2004. "Everyone's A Winner? Union Effects on Persistence in Private Sector Wage Settlements: Longitudinal Evidence from Britain," School of Economics Discussion Papers 1104, School of Economics, University of Surrey.
    4. Lindbeck, Assar & Snower, Dennis J., 2001. "Centralized bargaining and reorganized work: Are they compatible?," European Economic Review, Elsevier, vol. 45(10), pages 1851-1875, December.
    5. Babcock, Linda & Engberg, John & Greenbaum, Robert, 2005. "Wage spillovers in public sector contract negotiations: the importance of social comparisons," Regional Science and Urban Economics, Elsevier, vol. 35(4), pages 395-416, July.
    6. Creane, Anthony & Davidson, Carl, 2011. "The trade-offs from pattern bargaining with uncertain production costs," European Economic Review, Elsevier, vol. 55(2), pages 246-262, February.

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