Inflation Uncertainty and Strike Activity

Abstract

In this paper, we hypothesize that the general level of uncertainty can influence the level of strike activity. We test this hypothesis by considering the impact of inflation uncertain & on strike activity. Two databases are used: a pooled time‐series cross‐section sample of individual negotiations over the period 1971–1980, and quarterly data on negotiations from 1954 to 1980. Results from both data sets support the proposition that inflation uncertainty influences strike activity.