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

David Card and Craig Olson
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Craig Olson: Princeton University and University of Wisconsin-Madison

No 674, Working Papers from Princeton University, Department of Economics, Industrial Relations Section.

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.

Keywords: strikes; bargaining power; strike duration (search for similar items in EconPapers)
JEL-codes: C30 C31 C32 (search for similar items in EconPapers)
Date: 1992-01
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Bargaining Power, Strike Durations, and Wage Outcomes: An Analysis of Strikes in the 1880s (1995)
Working Paper: Bargaining Power, Strike Duration, and Wage Outcomes: An Analysis of Strikes in the 1880s (1992)
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Persistent link: https://EconPapers.repec.org/RePEc:pri:indrel:294

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