examines the institutional differences underlying these differences in strike activity. Our empirical analysis shows that … strike activity is high in France if workers were successful in obtaining relatively high wage increases in collective labour … agreements in the previous year, whereas strike activity is high in the Netherlands if, in the preceding year, real wage …

linear if strike is credible (low wage shares) and nonlinear otherwise (high wage shares). The model can admit two steady … state wage shares. The one under strike is not credible exceeds the one under strike is credible. A wage decrease can occur … if strike is credible, but never when strike is not credible. In the limit as time between bargaining rounds vanishes …