American Economic Review Vol. 79 No. 4 1989
Strikes, Wages, and Private Information
Abstract
Private information models of strikes suggest that the strike is used as an information-revealing device by the union in the presence of asymmetrical information. A testable prediction of these models is that there is a negative relationship between strikes and the unpredicted component of the wage. This paper shows that in a large sample of U.S. labor contracts the real wage falls by about 3 percent after a strike lasting 100 days.
- Volume
- 79
- Issue
- 4
- Pages
- 801-815
- Sources
- bibtex:phds-export.bib