The Use of Replacement Workers in Union Contract Negotiations: The U.S. Experience, 1980-1989
It is argued in many circles that a structural change occurred in U.S. collective bargaining in the 1980s. Strike incidence declined, dispute incidence increased, and the composition of disputes shifted away from strikes and toward holdouts. We investigate the extent to which the hiring of replacement workers can account for these changes. For a sample of over 300 major strikes since 1980, we estimate the likelihood of replacements being hired. We find that the risk of replacement is lower for bargaining units with more experienced workers, and declines during tight labor markets. The composition of disputes shifts away from strikes as the predicted risk of replacement increases. In addition, the overall level of disputes increases as a result of the shift in the composition of disputes. Based on our estimates reducing the predicted replacement risk faced by bargaining units to the pre-1982 levels would have lead to a reduction in the dispute incidence by around 5 percentage points, an increase in the fraction of disputes involving a strike by around 4 percentage points, and an increase in the strike incidence by around 0.8 percentage points.
|Date of creation:||09 Jun 1998|
|Date of revision:||09 Jun 1998|
|Publication status:||Published in Journal of Labor Economics, 16:4, October 1998, pages 667-701.|
|Contact details of provider:|| Postal: |
Phone: (202) 318-0520
Fax: (202) 318-0520
Web page: http://www.cramton.umd.edu
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gunderson, Morley & Kervin, John & Reid, Frank, 1986. "Logit Estimates of Strike Incidence from Canadian Contract Data," Journal of Labor Economics, University of Chicago Press, vol. 4(2), pages 257-76, April.
- Admati, Anat R & Perry, Motty, 1987. "Strategic Delay in Bargaining," Review of Economic Studies, Wiley Blackwell, vol. 54(3), pages 345-64, July.
- Henry S. Farber & Alan B. Krueger, 1992.
"Union Membership in the United States: The Decline Continues,"
NBER Working Papers
4216, National Bureau of Economic Research, Inc.
- Henry S. Farber & Alan Krueger, 1992. "Union Membership in the United States: The Decline Continues," Working Papers 685, Princeton University, Department of Economics, Industrial Relations Section..
- 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.
- John F. Schnell & Cynthia L. Gramm, 1994. "The empirical relations between employers' striker replacement strategies and strike duration," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(2), pages 189-206, January.
- Steven G. Allen, 1996.
"Technology and the Wage Structure,"
NBER Working Papers
5534, National Bureau of Economic Research, Inc.
- Daniel J. B. Mitchell, 1982. "Recent Union Contract Concessions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 13(1), pages 165-204.
- Cramton, Peter C & Tracy, Joseph S, 1992.
"Strikes and Holdouts in Wage Bargaining: Theory and Data,"
American Economic Review,
American Economic Association, vol. 82(1), pages 100-121, March.
- 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.
- John F. Schnell & Cynthia L. Gramm, 1994. "The Empirical Relations between Employers' Striker Replacement Strategies and Strike Duration," ILR Review, Cornell University, ILR School, vol. 47(2), pages 189-206, January.
- Gunderson, Morley & Melino, Angelo, 1990. "The Effects of Public Policy on Strike Duration," Journal of Labor Economics, University of Chicago Press, vol. 8(3), pages 295-316, July.
- Bartel, A.P. & Sicherman, N., 1995. "Technological Change and the Skill Acquisition of Young Workers," Papers 95-10, Columbia - Graduate School of Business.
- Cynthia L. Gramm & John F. Schnell, 1994. "Some Empirical Effects Of Using Permanent Striker Replacements," Contemporary Economic Policy, Western Economic Association International, vol. 12(3), pages 122-133, 07.
- Peter C. Cramton & Morley Gunderson & Joseph S. Tracy, 1995.
"The Effect of Collective Bargaining Legislation on Strikes and Wages,"
NBER Working Papers
5105, National Bureau of Economic Research, Inc.
- Peter Cramton & Morley Gunderson & Joseph Tracy, 1999. "The Effect Of Collective Bargaining Legislation On Strikes And Wages," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 475-487, August.
- Peter Cramton & Morley Gunderson & Joseph Tracy, 1999. "The Effect of Collective Bargaining Legislation on Strikes and Wages," Papers of Peter Cramton 99res, University of Maryland, Department of Economics - Peter Cramton, revised 30 Jul 1998.
- Bartel, Ann P & Sicherman, Nachum, 1998.
"Technological Change and the Skill Acquisition of Young Workers,"
Journal of Labor Economics,
University of Chicago Press, vol. 16(4), pages 718-55, October.
- Ann P. Bartel & Nachum Sicherman, 1995. "Technological Change and the Skill Acquisition of Young Workers," NBER Working Papers 5107, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:pcc:pccumd:98jole. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Cramton)
If references are entirely missing, you can add them using this form.