The Effect of Collective Bargaining Legislation on Strikes and Wages
Using Canadian data on large, private-sector contract negotiations from January 1967 to March 1993, we find that strikes and wages are substantially influenced by labor policy. The data indicate that conciliation policies have largely been ineffective in reducing strike costs. In contrast, general contract reopener provisions appear to make both unions and employers better off by reducing negotiation costs without systematically affecting wage settlements. Legislation banning the use of replacement workers appears to lead to significantly higher negotiation costs and redistribution of quasi-rents from employers to unions.
|Date of creation:||1999|
|Date of revision:||30 Jul 1998|
|Publication status:||Published in Review of Economics and Statistics, 81:3, 1999, pages 475-487.|
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Web page: http://www.cramton.umd.edu
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- Currie, Janet & McConnell, Sheena, 1991. "Collective Bargaining in the Public Sector: The Effect of Legal Structure on Dispute Costs and Wages," American Economic Review, American Economic Association, vol. 81(4), pages 693-718, September.
- Peter Cramton & Joseph S. Tracy, 1992.
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Papers of Peter Cramton
92aer, University of Maryland, Department of Economics - Peter Cramton, revised 09 Jun 1998.
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NBER Working Papers
2263, National Bureau of Economic Research, Inc.
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