An Empirical Analysis of Australian Strike Activity: Further Evidence on the Role of the Prices and Incomes Accord*

Abstract

This paper builds on Beggs and Chapman (1987a) to investigate whether the continuous operation of a corporatism consensual incomes policy over the past decade, in the form of the Prices and Incomes Accord, contributed significantly to the observed reduction in Australian strike activity. Models of strike incidence and strike duration are tested for the period 1959 (3) to 1991 (4). The evidence presented here indicates that the Accord has had a significant negative impact on the incidence of strikes. The Accord also appears to have reduced strike duration, although, somewhat surprisingly, this negative impact is stronger after the ‘second‐tier’ decision.

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