"This paper examines the effects of industrial action and the impact of strike costs on the industrial action activity. Germany is characterised by having little industrial action. Within the framework of a wage bargaining model, it is argued that higher industrial action costs for the union...

This paper examines the effects of industrial action and the impact of strike costs on the industrial action activity. Germany is characterised by having little industrial action. Within the framework of a wage bargaining model, it is argued that higher industrial action costs for the union lead...

A strike insurance is integrated into a model based on one-sided private information of the firm. It is shown that the strike insurance will increase the dispute level if payments to the insurance are lump-sum or if payments from the insurance are proportional to wages. However, if wages affect...