Competition and Openness: to What Extent Do they Explain the decline in US Strike Activity?

Alan Morris ()
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Alan Morris: Victoria University of Technology

Australian Journal of Labour Economics (AJLE), 2002, vol. 5, issue 3, 303-317

Abstract: This paper develops a theoretical model that may shed some light on the decline of strike activity in many Western economies in recent years. The model’s focus is on protracted strikes that are used in pursuit of wage demands. It proposes that strikes adversely affect employment, particularly in primary sector labour markets, first, by raising prices in product markets and, second, by branding strike-affected firms as unreliable suppliers. The model suggests that increased competition in product markets and high levels of unemployment go some way to explaining the decline in strike activity.

Keywords: Labor-management Relations; Trade unions and Collective bargaining: General Trade Unions: objectives; structure and effects (search for similar items in EconPapers)
JEL-codes: J50 J51 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ozl:journl:v:5:y:2002:i:3:p:303-317

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