Longitudinal Analysis of Strike Activity

Abstract

This paper presents evidence on two aspects of strike activity associated with the renegotiation of union contracts: the effects of contract characteristics on dispute probabilities; and the effects of lagged strike outcomes on the incidence and duration of subsequent disputes. The empirical results show that strike probabilities are higher following a longer contract, and lower in limited reopening situations. Strike probabilities are also higher in summer and fall than in winter and spring. Finally, strike probabilities are significantly affected by lagged strike outcomes. Relative to a peaceful settlement, strike probabilities are 10 percentage points higher following a strike of two weeks or less, and 5 to 7 percentage points lower following a longer dispute.