Power Law Distributions and the Size Distribution of Strikes

Abstract

Using Canadian data from 1976 to 2014, I study the size distribution of strikes with three alternative measures of strike size: the number of workers on strike, strike duration in calendar days, and the number of person calendar days lost to a strike. I use a maximum likelihood framework that provides a way to estimate distributions, evaluate model fit, and also test against alternative distributions. I consider a few theories that can create power law distributions in strike size, such as the joint costs model that posits strike size is inversely proportional to dispute costs. I find that the power law distribution fits the data for the number of lost person calendar days relatively well and is also more appropriate than the lognormal distribution. I also discuss the implications of my findings from a methodological, research, and policy perspective.