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The Review of Economics and Statistics Vol. 71 No. 4 1989

Inflation Uncertainty and Contract Duration

Susan Vroman

Abstract

This study examines the determinants of the duration of U.S. union contracts using a longitudinal contract data base. Support is found for the hypotheses that (1) inflation uncertainty reduces contract length and that (2) greater contracting costs, as proxied by a strike variable and by previous duration, increase contract length. In addition, contract duration is found to be greater for indexed contracts, to be procyclical, and to have increased over the sample period.

DOI
10.2307/1928111
Volume
71
Issue
4
Pages
677
Sources
crossref openalex

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