The Effect of Strike Replacement Legislation on Employment

Labour Economics

Posted: 21 Jan 2000

See all articles by John W. Budd

John W. Budd

University of Minnesota - Twin Cities - Carlson School of Management

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Abstract

Employers and employer groups often argue that restrictions on an employer's ability to use replacement workers during a strike reduce employment. This study analyzes the effect of Canadian provincial strike replacement legislation on employment using province-level aggregate data for 1966-94 and private sector, bargaining unit-level disaggregated data for 1966-93. Three types of strike replacement statutes are analyzed: strike replacement bans that prohibit both permanent and temporary replacements, reinstatement rights for strikers (effectively banning permanent replacements), and restrictions on the use of professional strikebreakers. A strike replacement ban that restricts the use of both permanent and temporary replacements is found to have negative employment consequences. The results for reinstatement rights provisions and professional strikebreaker bans are mixed.

Note: This is a description of the paper and not the actual abstract.

JEL Classification: J23, J52, J58

Suggested Citation

Budd, John W., The Effect of Strike Replacement Legislation on Employment. Labour Economics. Available at SSRN: https://ssrn.com/abstract=182609

John W. Budd (Contact Author)

University of Minnesota - Twin Cities - Carlson School of Management ( email )

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