Template-Type: ReDIF-Paper 1.0
Author-Name: Christa Brunnschweiler
Author-Name-First: Christa
Author-Name-Last: Brunnschweiler
Author-Email: christa.brunnschweiler@ntnu.no
Author-Workplace-Name: Norwegian University of Science and Technology, and OxCarre, University of Oxford
Author-Name: Colin Jennings
Author-Name-First: Colin
Author-Name-Last: Jennings
Author-Email: colin.jennings@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Author-Name: Ian MacKenzie
Author-Name-First: Ian
Author-Name-Last: MacKenzie
Author-Email: imackenzie@ethz.ch
Author-Workplace-Name: ETH Zurich
Title: Rebellion against Reason? A Study of Expressive Choice and Strikes
Abstract: In this paper we challenge the conventional view that strikes are caused by asymmetric information regarding firm profitability such that union members are uninformed. Instead, we build an expressive model of strikes where the perception of unfairness provides the expressive benenifit of voting for a strike. The model predicts that larger union size increases both wage offers and the incidence of strikes. Furthermore, while asymmetric information is still important in causing strikes, we find that it is the employer who is not fully informed about the level of emotionality within the union, thereby contributing to strike incidence. An empirical test using UK data provides support for the predictions. In particular, union size has a positive effect on the incidence of strikes and other industrial actions even when asymmetric information regarding profitability is controlled for.
Length: 25 pages
Creation-Date: 2012-06
Revision-Date: 
Publication-Status: Published
File-URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/2012/12-05-Final.pdf
File-Format: Application/pdf
Number: 1205
Classification-JEL: D03; D72: J52
Keywords: strikes; fairness; expressive voting
Handle: RePEc:str:wpaper:1205