Rebellion against Reason? A Study of Expressive Choice and Strikes
In this paper we challenge the conventional view that strikes are caused by asymmetric information regarding firm profitability such that union members are uninformed. Instead, we build an expressive model of strikes where the perception of unfairness provides the expressive benenifit of voting for a strike. The model predicts that larger union size increases both wage offers and the incidence of strikes. Furthermore, while asymmetric information is still important in causing strikes, we find that it is the employer who is not fully informed about the level of emotionality within the union, thereby contributing to strike incidence. An empirical test using UK data provides support for the predictions. In particular, union size has a positive effect on the incidence of strikes and other industrial actions even when asymmetric information regarding profitability is controlled for.
|Date of creation:||Jun 2012|
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- Hamlin, Alan & Jennings, Colin, 2011.
"Expressive Political Behaviour: Foundations, Scope and Implications,"
British Journal of Political Science,
Cambridge University Press, vol. 41(03), pages 645-670, July.
- Alan Hamlin & Colin Jennings, 2009. "Expressive Political Behaviour: Foundations, Scope and Implications," Working Papers 0918, University of Strathclyde Business School, Department of Economics.
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- Andrew Gelman & Nate Silver & Aaron Edlin, 2012. "What Is The Probability Your Vote Will Make A Difference?," Economic Inquiry, Western Economic Association International, vol. 50(2), pages 321-326, 04.
- Andrew Gelman & Nate Silver & Aaron Edlin, 2009. "What is the probability your vote will make a difference?," NBER Working Papers 15220, National Bureau of Economic Research, Inc.
- James T. Bennett & Bruce E. Kaufman, 2004. "What Do Unions Do?: A Twenty-Year Perspective," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 339-350, July.
- Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
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- M. Rabin, 2001. "Incorporating Fairness into Game Theory and Economics," Levine's Working Paper Archive 511, David K. Levine.
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