Examining Work Stoppages in a Modified Goodwin Business Cycle Model

Themes and Issues in Labor and Labor Unions

 

Examining Work Stoppages in a Modified Goodwin Business Cycle Model Tazewell Hurst, International Association of Machinists

Summary

•       Until recently, there was a general consensus that the number of work stoppages (strikes and lockouts) is cyclical. Aside from a few incidents, “noise”, it was shown empirically that the number of strikes tend to increase during economic expansion but decline during a contraction. 

•       Most believe this pro cyclical relationship was a “stylized’ economic fact, at least up to the end of what is considered the “golden age” of capitalism (1948 – 1980).  Further, research indicate that trends in strike activity and union membership were more instrumental for impacting labor's share during the peak period of the capital–labor accord (golden age) and less instrumental in later period post 1981(neoliberal period).