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Output and Strike Activity in U.S. Manufacturing: How Large are the Losses?

This study analyzes the relationship between strike activity and output among disaggregated manufacturing industries. A major finding is that in many manufacturing industries, strikes have no discernible effect on industry output. Even when strikes are found to have a statistically significant effect on output, the net loss of output appears to be small. Overall, the evidence suggests that the ability of nonstruck firms to increase their output, and of struck firms to draw on inventories, makes it highly unlikely that strikes in manufacturing will cause a national emergency.