Strike Pay and Employers' Strike Insurance
Metroeconomica, Vol. 51, Issue 3, August 2000
Posted: 14 Jun 2001
The consequences of strike pay for employees and of an employers' strike insurance fund are analysed in a two-period screening model of labour disputes with private information of the firm. It is shown that the employers' strike fund reduces uncertainty and hence lowers strike activity. If the union's strike pay fund can incur a deficit during disputes, strike pay will raise strike activity. If strike pay and an employers' insurance are combined, strikes may become less probable.
JEL Classification: J51, J52
Suggested Citation: Suggested Citation