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Wage strikes in 1880s America: A test of the war of attrition model

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  • Geraghty, Thomas M.
  • Wiseman, Thomas

Abstract

By relating strike outcomes and durations to the value of the disputed wage change and to the cost to each side of continuing the strike, this paper tests the hypothesis that the war of attrition with asymmetric information model of strikes accurately describes the characteristics of strikes over wages in the United States in the early to middle part of the 1880s. That hypothesis is not rejected by linear, probit, or nonparametric kernel estimation. Specifically, variables that decrease a side's cost of striking or increase its opponent's cost are shown to increase its maximum holdout time, and vice versa, and strike duration increases with the value of the prize in dispute and with uncertainty about the outcome. Alternative game theoretic models of strikes--signaling and screening models, and models with ongoing negotiations--do not fit the data as well. We also explore why the strikes took the form of wars of attrition, and why later strikes did not. Our results have implications for modern union behavior in the face of globalization.

Suggested Citation

  • Geraghty, Thomas M. & Wiseman, Thomas, 2008. "Wage strikes in 1880s America: A test of the war of attrition model," Explorations in Economic History, Elsevier, vol. 45(4), pages 303-326, September.
    • Handle: RePEc:eee:exehis:v:45:y:2008:i:4:p:303-326
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    Cited by:

    1. Molinder, Jakob & Karlsson, Tobias & Enflo, Kerstin, 2022. "Social democracy and the decline of strikes," Explorations in Economic History, Elsevier, vol. 83(C).
    2. Stefan Oliver Houpt & Juan Carlos Rojo Cagigal, 2014. "Relative deprivation and labour conflict during Spain’s industrialization: the Bilbao estuary, 1914–1936," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 8(3), pages 335-369, September.
    3. Kyung nok Chun & Zachary Schaller & Stergios Skaperdas, 2020. "Why Are There Strikes?," Revue d'économie politique, Dalloz, vol. 130(6), pages 929-956.
    4. 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.
    5. Michele Campolieti, 2021. "Strikes in British Coal Mining, 1893–1940: Testing Models of Strikes," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 60(2), pages 243-273, April.
    6. Maxime Menuet & Petros G. Sekeris, 2022. "Engaging in Wars of Attrition," Annals of Economics and Statistics, GENES, issue 147, pages 79-100.
    7. Geraghty, Thomas M. & Wiseman, Thomas, 2011. "Conflict and compromise: Changes in U.S. strike outcomes, 1880 to 1945," Explorations in Economic History, Elsevier, vol. 48(4), pages 519-537.
    8. Kerstin Enflo & Tobias Karlsson, 2019. "From conflict to compromise: the importance of mediation in Swedish work stoppages 1907–1927," European Review of Economic History, European Historical Economics Society, vol. 23(3), pages 268-298.

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