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Longitudinal Analysis of Strike Activity

Author

Listed:
  • David E. Card

    (Princeton University)

Abstract

This paper presents evidence on two aspects of strike activity associated with the renegotiation of union contracts: the effects of contract characteristics on dispute probabilities; and the variation in strike activity over tine within bargaining pairs. Cross-sectional and longitudinal estimation techniques show that strike probabilities are higher in summer and fall than winter and spring. Strike probabilities are also increased by increasing the length of time between negotiations, and reduced in limited wage reopening negotiations. Finally, strike probabilities are significantly affected by lagged strike out- comes. Relative to a peaceful settlement of the previous contract, strike probabilities are l0 percentage points higher following a strike of two weeks or less, and 5 to 7 percentage points lower following a strike of longer than two weeks.

Suggested Citation

  • David E. Card, 1986. "Longitudinal Analysis of Strike Activity," Working Papers 593, Princeton University, Department of Economics, Industrial Relations Section..
    • Handle: RePEc:pri:indrel:213
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    References listed on IDEAS

    as
    1. Sheena McConnell, "undated". "Cyclical Fluctuations in Strike Activity," Mathematica Policy Research Reports ae5f651b2b044d41b9c54afe4, Mathematica Policy Research.
    2. Card, David, 1988. "Longitudinal Analysis of Strike Activity," Journal of Labor Economics, University of Chicago Press, vol. 6(2), pages 147-176, April.
    3. David D. Hale, 1986. "Analysis," Challenge, Taylor & Francis Journals, vol. 29(5), pages 52-56, November.
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    5. Reder, Melvin W & Neumann, George R, 1980. "Conflict and Contract: The Case of Strikes," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 867-886, October.
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    7. repec:bla:econom:v:37:y:1970:i:147:p:239-56 is not listed on IDEAS
    8. 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.
    9. Ashenfelter, Orley & Johnson, George E, 1969. "Bargaining Theory, Trade Unions, and Industrial Strike Activity," American Economic Review, American Economic Association, vol. 59(1), pages 35-49, March.
    10. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 225-238.
    11. David Card, 1986. "Longitudinal Analysis of Strike Activity," Working Papers 593, Princeton University, Department of Economics, Industrial Relations Section..
    12. Siebert, W Stanley & Addison, John T, 1981. "Are Strikes Accidential?," Economic Journal, Royal Economic Society, vol. 91(362), pages 389-404, June.
    13. Tracy, Joseph S, 1986. "An Investigation into the Determinants of U.S. Strike Activity," American Economic Review, American Economic Association, vol. 76(3), pages 423-436, June.
    14. Martin J. Mauro, 1982. "Strikes as a Result of Imperfect Information," ILR Review, Cornell University, ILR School, vol. 35(4), pages 522-538, July.
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    Citations

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    Cited by:

    1. Kyle Hyndman, 2004. "Status Quo Effects In Bargaining: An Empirical Analysis of OPEC," Econometric Society 2004 North American Summer Meetings 285, Econometric Society.
    2. Peter Cramton & Morley Gunderson & Joseph Tracy, 1999. "The Effect Of Collective Bargaining Legislation On Strikes And Wages," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 475-487, August.
    3. Kuhn, Peter & Gu, Wulong, 1999. "Learning in Sequential Wage Negotiations: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 109-140, January.
    4. Kennan, John, 1995. "Repeated contract negotiations with private information," Japan and the World Economy, Elsevier, vol. 7(4), pages 447-472, November.
    5. Card, David, 1988. "Longitudinal Analysis of Strike Activity," Journal of Labor Economics, University of Chicago Press, vol. 6(2), pages 147-176, April.
    6. William H. Greene & Ana P. Martins, 2002. "Striking Features of the Labor Market," EERI Research Paper Series EERI RP 2002/08, Economics and Econometrics Research Institute (EERI), Brussels.
    7. William H. Greene & Ana P. Martins, 2013. "Striking Features of the Labor Market: Theory," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 56(2), pages 1-24.
    8. M. Rodwan Abouharb & Benjamin O. Fordham, 2020. "Trade and Strike Activity in the Postwar United States," Social Sciences, MDPI, vol. 9(11), pages 1-25, October.
    9. Bradley R. Weinberg, 2020. "Third-Party Intervention and the Preservation of Bargaining Relationships," ILR Review, Cornell University, ILR School, vol. 73(2), pages 498-527, March.
    10. Miguel Malo & Nuria Sánchez-Sánchez, 2014. "The legal form of labour conflicts and their time persistence: an empirical analysis with a large firms’ panel," European Journal of Law and Economics, Springer, vol. 38(3), pages 513-533, December.
    11. Currie, Janet & McConnell, Sheena, 1992. "Firm-Specific Determinants of the Real Wage," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 297-304, May.
    12. William H. Greene & Ana P. Martins, 2013. "Striking Features of the Labor Market: Empirical Evidence," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 56(2), pages 25-53.
    13. Lemke, Robert J., 2004. "Dynamic bargaining with action-dependent valuations," Journal of Economic Dynamics and Control, Elsevier, vol. 28(9), pages 1847-1875, July.

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    More about this item

    Keywords

    strikes; longitudinal analysis; state dependence;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium

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