Desperate Measures: Strikes and Wages in Post-Accord America

Using previously unreleased data on nearly every authorized work stoppage that occurred between 1984 and 2002, this paper tests whether the positive wage-strike relationship held following the breakdown of the post-war labor-capital accord. Unlike in decades past, these findings indicate a complete decoupling of the wage-strike relationship. Even in those industries and regions where unions remain relatively institutionalized, strikes no longer increase aggregate worker pay. Strike activity also fails to narrow worker wage dispersion at the industry-region level. The findings highlight the need for rethinking existing theoretical models on strike activity and wages in this era of capital dominance.