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The Determinants of U.S. Labor Disputes

  • Cramton, Peter C
  • Tracy, Joseph S

The authors present a bargaining model of union contract negotiations in which the union decides between two threats: the union can strike or it can continue to work under the expired contract. The model makes predictions about the level of dispute activity and the form disputes take. Strike incidence increases as the strike threat becomes more attractive because of low unemployment or a real wage drop. The authors test these predictions by estimating logistic models of dispute incidence and dispute composition for negotiations from 1970 to 1989. They find support for the model's key predictions but these associations are weaker after 1981. Copyright 1994 by University of Chicago Press.

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File URL: http://dx.doi.org/10.1086/298355
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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 12 (1994)
Issue (Month): 2 (April)
Pages: 180-209

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Handle: RePEc:ucp:jlabec:v:12:y:1994:i:2:p:180-209
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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  1. Michael L. Wachter & William H. Carter, 1989. "Norm Shifts in Union Wages: Will 1989 Be a Replay of 1969?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(2), pages 233-276.
  2. Anat R. Admati & Motty Perry, 1987. "Strategic Delay in Bargaining," Review of Economic Studies, Oxford University Press, vol. 54(3), pages 345-364.
  3. Kennan, John & Wilson, Robert, 1989. "Strategic Bargaining Models and Interpretation of Strike Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(S), pages S87-130, Supplemen.
  4. Joseph S. Tracy, 1986. "An Empirical Test of an Asymmetric Information Model of Strikes," NBER Working Papers 1870, National Bureau of Economic Research, Inc.
  5. Anonymous, 1987. "Australian Agricultural Economics Society Awards 1986," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(02), August.
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  8. John M. Abowd & Richard B. Freeman, 1990. "The Internationalization of the U.S. Labor Market," NBER Working Papers 3321, National Bureau of Economic Research, Inc.
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  10. Ariel Rubinstein, 2010. "Perfect Equilibrium in a Bargaining Model," Levine's Working Paper Archive 252, David K. Levine.
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  12. Card, David, 1990. "Strikes and Bargaining: A Survey of the Recent Empirical Literature," American Economic Review, American Economic Association, vol. 80(2), pages 410-15, May.
  13. Reder, Melvin W & Neumann, George R, 1980. "Conflict and Contract: The Case of Strikes," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 867-86, October.
  14. Peter Cramton & Joseph S. Tracy, 1992. "Strikes and Holdouts in Wage Bargaining: Theory and Data," Papers of Peter Cramton 92aer, University of Maryland, Department of Economics - Peter Cramton, revised 09 Jun 1998.
  15. John M. Abowd & Joseph S. Tracy, 1988. "Market Structure, Strike Activity, and Union Wage Settlements," NBER Working Papers 2595, National Bureau of Economic Research, Inc.
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  17. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade, and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, September.
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  19. N/A, 1987. "Chaptefi III. the British Economy Since 1979," National Institute Economic Review, National Institute of Economic and Social Research, vol. 122(1), pages 41-46, November.
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  21. -, 1989. "Export industrialization and women," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 27678, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  22. anonymous, 1987. "Review of domestic and external economy," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 50, march.
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