The Spillover Effects of Industrial Action on Firm Profitability

The Spillover Effects of Industrial Action on Firm Profitability While it is generally accepted that strikes can have a negative impact on a firm's performance, the direct effects of a strike on the affected firm may be only one component of the total impact resulting from the action. The existence of indirect or “spillover” effects can also have important implications for the economic performance of competing firms. This paper uses a panel of firm-level financial and strikes data for a large sample of firms in Australian manufacturing to determine the extent of direct and spillover effects of industrial action. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

The Spillover Effects of Industrial Action on Firm Profitability

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1999 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007734700418
Publisher site
See Article on Publisher Site

Abstract

While it is generally accepted that strikes can have a negative impact on a firm's performance, the direct effects of a strike on the affected firm may be only one component of the total impact resulting from the action. The existence of indirect or “spillover” effects can also have important implications for the economic performance of competing firms. This paper uses a panel of firm-level financial and strikes data for a large sample of firms in Australian manufacturing to determine the extent of direct and spillover effects of industrial action.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 15, 2004

References

  • An Empirical Analysis of Australian Strike Activity: Estimating the Industrial Relations Effect of the First Three Years of the Prices and Incomes Accord
    Beggs, J.; Chapman, B.
  • Specification and Testing the Profit-Concentration Relationship in Australian Manufacturing
    Bhattacharya, M.; Bloch, H.

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