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Work Stoppages and the Theory of the Offset Factor: Evidence from the British Columbian Lumber Industry

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  • Paarsch, Harry J

Abstract

One method of estimating losses resulting from work stoppages is to multiply the total number of man-days lost during disputes by the average product of workers. This statistic can be easily calculated using information typically available from government agencies, but has obvious flaws. For example, the behavior of other firms not involved in disputes is ignored. Moreover, when output is durable, the impact on consumption is unknown since inventories can be used as buffers. To assess the importance of these and other considerations, the author develops an alternative empirical framework and implements it using data from the British Columbian lumber industry. Copyright 1990 by University of Chicago Press.

Suggested Citation

  • Paarsch, Harry J, 1990. "Work Stoppages and the Theory of the Offset Factor: Evidence from the British Columbian Lumber Industry," Journal of Labor Economics, University of Chicago Press, vol. 8(3), pages 387-417, July.
    • Handle: RePEc:ucp:jlabec:v:8:y:1990:i:3:p:387-417
    DOI: 10.1086/298228
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    Cited by:

    1. Goerke, Laszlo, 2005. "Korreferat : Arbeitskämpfe - eine ökonomische Perspektive (Supplementary paper * industrial action - an economic perspektive)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 230-240.
    2. Goerke, Laszlo, 2005. "Korreferat : Arbeitskämpfe - eine ökonomische Perspektive (Supplementary paper * industrial action - an economic perspektive)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 230-240.
    3. Goerke, Laszlo, 2005. "Korreferat : Arbeitskämpfe - eine ökonomische Perspektive (Supplementary paper * industrial action - an economic perspektive)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 230-240.
    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. Leach, John, 1997. "Inventories and Wage Bargaining," Journal of Economic Theory, Elsevier, vol. 75(2), pages 433-463, August.

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