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Productivity Effects of Strikes in Struck and Nonstruck Industries

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  • Richard McHugh

Abstract

This study examines the extent to which strikes impaired productivity in nine manufacturing industries, as well as in other industries linked as suppliers or purchasers to the struck industries, in 1967–81. The analysis shows that strikes were associated with productivity declines of greater statistical significance in the linked industries than in the industries experiencing the strikes. The author concludes that studies using only the individual struck firm or industry as the unit of observation underestimate the impact of strike activity on short-run labor productivity.

Suggested Citation

  • Richard McHugh, 1991. "Productivity Effects of Strikes in Struck and Nonstruck Industries," ILR Review, Cornell University, ILR School, vol. 44(4), pages 722-732, July.
    • Handle: RePEc:sae:ilrrev:v:44:y:1991:i:4:p:722-732
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    Cited by:

    1. Jonathan Gruber & Samuel A. Kleiner, 2012. "Do Strikes Kill? Evidence from New York State," American Economic Journal: Economic Policy, American Economic Association, vol. 4(1), pages 127-157, February.
    2. Shafiq Alvi, 2001. "The impact of strikes on Canadian trade balance," Applied Economics Letters, Taylor & Francis Journals, vol. 8(6), pages 389-396.
    3. A. P. Dickerson & P. A. Geroski & K. G. Knight, 1997. "Productivity, Efficiency and Strike Activity," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(1), pages 119-134.
    4. James McDonald & Harry Bloch, 1999. "The Spillover Effects of Industrial Action on Firm Profitability," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(2), pages 183-200, September.
    5. Martin B. Schmidt & David J. Berri, 2004. "The Impact of Labor Strikes on Consumer Demand: An Application to Professional Sports," American Economic Review, American Economic Association, vol. 94(1), pages 344-357, March.

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