Trade and Strike Activity in the Postwar United States

Abstract

This paper examines the effect of international trade on strike activity within the United States since World War II. Globalization may influence strike activity through its effects on the bargaining position of labor. Alternatively, if labor and management take their changed bargaining positions into account, the rate of change in openness could create greater uncertainty in negotiations between them and lead to more strikes as a result. Empirical analysis of strike activity in the 50 states over this period supports the argument concerning uncertainty in the bargaining process. Import competition may also indirectly reduce strike activity by decreasing union density.