@techreport{NBERw4075,
title = "Bargaining Power, Strike Duration, and Wage Outcomes: An Analysis of Strikes in the 1880s",
author = "David Card and Craig A. Olson",
institution = "National Bureau of Economic Research",
type = "Working Paper",
series = "Working Paper Series",
number = "4075",
year = "1992",
month = "May",
doi = {10.3386/w4075},
URL = "http://www.nber.org/papers/w4075",
abstract = {We study strike durations and outcomes for some 2000 disputes that occurred between 1881 and 1886. Most post-strike bargaining settlements in the 1880s fell into one of two categories: either a union "victory", characterized by a significant wage gain or hours cut, or a union "defeat", characterized by the resumption of work at the previous terms of employment. We find a strong negative relation between strike duration and the value of the settlement to workers. reflecting the declining probability of a union victory among longer strikes. For the subset of strikes over wage increases we estimate a structural model that includes equations for the capitulation times of the two parties and a specification of the wage increase conditional on a union victory. This framework provides a simple index of employees' relative bargaining power. based on the relative time to a union capitulation. Employees' relative bargaining power was higher in disputes involving fewer workers and in union ordered strikes. but substantially lower after the Haymarket Square incident in Chicago in 1886.},
}