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An Empirical Study of the Adverse Selection Model of Strikes

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  • Timothy C. G. Fisher

Abstract

Problems with existing empirical studies of the asymmetric information theory of strikes are (1) industry-level data are used as proxies for firm-level variables, (2) studies using firm-level data potentially suffer from simultaneity bias, and (3) one of the key predictions of the theory is not tested. The present paper addresses these issues, while estimating a probit model of strike incidence using data comprising 2,459 contracts from Canadian industry for 1964-85 that are merged with firm-specific data. Under a number of alternative specifications, results support the main predictions of the asymmetric information theory of strikes.

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  • Timothy C. G. Fisher, 1991. "An Empirical Study of the Adverse Selection Model of Strikes," Canadian Journal of Economics, Canadian Economics Association, vol. 24(3), pages 499-516, August.
    • Handle: RePEc:cje:issued:v:24:y:1991:i:3:p:499-516
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    Cited by:

    1. Archontis L. Pantsios & Solomon W. Polachek, 2017. "How Asymmetrically Increasing Joint Strike Costs Need Not Lead to Fewer Strikes," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(2), pages 149-161, June.

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