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An Empirical Analysis of Australian Strike Activity: Further Evidence on the Role of the Prices and Incomes Accord

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  • ALAN MORRIS
  • KENNETH WILSON

Abstract

This paper builds on Beggs and Chapman (1987a) to investigate whether the continuous operation of a corporatism consensual incomes policy over the past decade, in the form of the Prices and Incomes Accord, contributed significantly to the observed reduction in Australian strike activity. Models of strike incidence and strike duration are tested for the period 1959 (3) to 1991 (4). The evidence presented here indicates that the Accord has had a significant negative impact on the incidence of strikes. The Accord also appears to have reduced strike duration, although, somewhat surprisingly, this negative impact is stronger after the ‘second‐tier’ decision.

Suggested Citation

  • Alan Morris & Kenneth Wilson, 1994. "An Empirical Analysis of Australian Strike Activity: Further Evidence on the Role of the Prices and Incomes Accord," The Economic Record, The Economic Society of Australia, vol. 70(209), pages 183-191, June.
    • Handle: RePEc:bla:ecorec:v:70:y:1994:i:209:p:183-191
    DOI: 10.1111/j.1475-4932.1994.tb01837.x
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    References listed on IDEAS

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    1. Mark Wooden, 1990. "Corporatism And Wage Setting: The Accord In Hindsight," Economic Papers, The Economic Society of Australia, vol. 9(2), pages 51-63, June.
    2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    3. repec:bla:ecorec:v:53:y:1977:i:142&143:p:297-319 is not listed on IDEAS
    4. Hylleberg, S. & Engle, R. F. & Granger, C. W. J. & Yoo, B. S., 1990. "Seasonal integration and cointegration," Journal of Econometrics, Elsevier, vol. 44(1-2), pages 215-238.
    5. PHILIP E.T. LEWIS & GARRY A. MacDONALD, 1993. "Testing for Equilibrium in the Australian Wage Equation," The Economic Record, The Economic Society of Australia, vol. 69(3), pages 295-304, September.
    6. MacKinnon, James G. & White, Halbert & Davidson, Russell, 1983. "Tests for model specification in the presence of alternative hypotheses : Some further results," Journal of Econometrics, Elsevier, vol. 21(1), pages 53-70, January.
    7. repec:bla:ecorec:v:69:y:1993:i:206:p:295-304 is not listed on IDEAS
    8. John J. Beggs & Bruce J. Chapman, 1987. "Declining Strike Activity in Australia 1983–85: An International Phenomenon?," The Economic Record, The Economic Society of Australia, vol. 63(4), pages 330-339, December.
    9. repec:bla:ecorec:v:63:y:1987:i:183:p:330-39 is not listed on IDEAS
    10. Newell, A. & Symons, J. S. V., 1987. "Corporatism, laissez-faire and the rise in unemployment," European Economic Review, Elsevier, vol. 31(3), pages 567-601, April.
    11. A. J. Phipps, 1977. "Strike Activity and Inflation in Australia," The Economic Record, The Economic Society of Australia, vol. 53(3), pages 297-319, September.
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    Cited by:

    1. L.J. Perry & Patrick J. Wilson, 2005. "The Decline of Seasonality in Australian Quarterly Aggregate Strike Statistics: 1983-2003," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(1), pages 43-71, March.
    2. L.J. Perry & Patrick J. Wilson, 2000. "The Accord and strikes: an International perspective," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 4(4), pages 232-247, December.
    3. Ann Hodgkinson, 2004. "Strike Activity under Enterprise Bargaining: Economics or Politics?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(4), pages 439-457, December.
    4. L. J. Perry, 2005. "A Long-Term Perspective On Industrial Disputes In Australia: 1913–2003," Economic Papers, The Economic Society of Australia, vol. 24(3), pages 263-279, September.

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