Institutional Turmoil and Strike Activity in Korea

Abstract

The economic strike literature focuses on rational actors engaging in strike activity to increase their economic outcome. A separate literature emphasizes institutional, behavioural and political reasons for strike activity. While these literatures are rarely integrated, we posit that micro-level institutional turmoil, indexed by the presence of intra-firm union rivalries or outside third-party provo cateurs, and the maturity of the bargaining relationship, are important determi nants of economic strike activity. In three new micro-level data sets from Korea, micro-level institutional turmoil is found to be significantly related to strike activity.