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Economic Globalization and Strike Activity in the United States, 1964-1980
Unformatted Document Text:  mean that even for those whose skills are in demand, their jobs are now much less secure than previously. Wage restraint, wage decreases, and lower job security generates differences between expectations and outcomes. We frame these changes within larger theories of mobilization and relative deprivation. All else being equal expectations from the relative deprivation literature would suggest an increased possibility of strikes when employees are faced with the prospects of wage restraint, wage decreases or lower levels of job security. In contrast, theories which stress mobilization would highlight the impact of globalization on the ability of unions to organize strikes within the workplace. Recent research examining globalization in some of the industrialized economies indicates that globalization has reduced union density (Piazza 2005). Mobilization theories suggest that as organization becomes more difficult this reduces the probability of collective action. Thus, while globalization may lead to less strike activity within the work place, this is not because of labor tranquility in the face of globalization, but rather the debilitating consequences of this process have made it more difficult for labor unions to strike against the changes that have been taking place. Second, we argue that the consequences of economic globalization are not uniform within countries. Geographic areas will range in the experience brought about by economic globalization. In some sub-national areas the local economy may be more greatly affected by changing levels of integration into the international economy, while others may have relatively few interactions. Likewise some areas might benefit from increased integration as new companies open or wages increase for those with specialized skills. Other areas might suffer if many inefficient firms close and none re-open or wages drop for those whose skills can be purchased more cheaply abroad. From an empirical 3

Authors: Abouharb, Mohammed. and Fordham, Benjamin.
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mean that even for those whose skills are in demand, their jobs are now much less secure
than previously. Wage restraint, wage decreases, and lower job security generates
differences between expectations and outcomes. We frame these changes within larger
theories of mobilization and relative deprivation. All else being equal expectations from
the relative deprivation literature would suggest an increased possibility of strikes when
employees are faced with the prospects of wage restraint, wage decreases or lower levels
of job security. In contrast, theories which stress mobilization would highlight the impact
of globalization on the ability of unions to organize strikes within the workplace. Recent
research examining globalization in some of the industrialized economies indicates that
globalization has reduced union density (Piazza 2005). Mobilization theories suggest that
as organization becomes more difficult this reduces the probability of collective action.
Thus, while globalization may lead to less strike activity within the work place, this is not
because of labor tranquility in the face of globalization, but rather the debilitating
consequences of this process have made it more difficult for labor unions to strike against
the changes that have been taking place.
Second, we argue that the consequences of economic globalization are not
uniform within countries. Geographic areas will range in the experience brought about by
economic globalization. In some sub-national areas the local economy may be more
greatly affected by changing levels of integration into the international economy, while
others may have relatively few interactions. Likewise some areas might benefit from
increased integration as new companies open or wages increase for those with specialized
skills. Other areas might suffer if many inefficient firms close and none re-open or wages
drop for those whose skills can be purchased more cheaply abroad. From an empirical
3


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