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Bargaining Power, Strike Durations, and Wage Outcomes: An Analysis of Strikes in the 1880s

Author

Listed:
  • David Card

    (Princeton University)

  • Craig A. Olson

    (Princeton University and University of Wisconsin-Madison)

Abstract

We study strike durations and outcomes for some 2000 disputes that occurred between 1881 and 1886. Most post-strike bargaining settlements in the 1880s fell into one of two categories: either a union "victory", characterized by a significant wage gain or hours cut, or a union "defeat", characterized by the resumption of work at the previous terms of employment. We find a strong negative relation between strike duration and the value of the settlement to workers, reflecting the declining probability of a union victory among longer strikes. For the subset of strikes over wage increases we estimate a structural model that includes equations for the capitulation times of the two parties and a specification of the wage increase conditional on a union victory. We find strong support for a relative bargaining power hypothesis: factors that enhance the workers' ability to withstand a strike tend to raise the wage increase in the event of a successful strike, while factors that enhance the employer's ability to withstand a strike tend to lower the wage increase in the event of a union victory.

Suggested Citation

  • David Card & Craig A. Olson, 1992. "Bargaining Power, Strike Durations, and Wage Outcomes: An Analysis of Strikes in the 1880s," Working Papers 674, Princeton University, Department of Economics, Industrial Relations Section..
    • Handle: RePEc:pri:indrel:294
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    References listed on IDEAS

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    More about this item

    Keywords

    strikes; bargaining power; strike duration;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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