1.1 Introduction
We examine the impact of economic globalization on strike activity in the United
States from 1964 to 1980. Our examination is framed within the broader literature about
the impact economic globalization on domestic instability. Expectations about the impact
of globalization vary. Defenders of globalization argue that the benefits of increased
international trade generate higher levels of wealth and improve the social welfare
position of broad swathes of society (e.g. Bhagwati 2003; Dollar 2001). Indeed, where
capital has been directed has seen the emergence and strengthening of a new working
class (Silver 2003). Critics of globalization argue that this process results in a “race to the
bottom” as high-skilled high-wage jobs move to lower wage countries (e.g Mazur 2000;
Tonelson 2002). These shifts should increase the probability that individuals losing out
protest the changes taking place at their workplace. A third possibility is that
globalization weakens the bargaining position of labor, at least in many of the
industrialized countries, making the organization of strikes more difficult leading to an
overall reduction in the strike rate (Piazza 2005). Evidence in previous research has been
arrayed for all sides.
We build on this literature by arguing for a refinement in the distinction between
processes and outcomes. The outcome of globalization may be to generate higher levels
of wealth within society. Yet, the process of the wealth accumulation is a painful one
where individuals, with the right sets of skills, are rewarded with higher wages, but these
rewards are not extended to all. Competition from abroad may lead to wage restraint and
possibly wage decreases for others whose skills are in less demand or whose companies
are in worse financial situations. Finally, the vagaries of the international market may
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Convention