Finding Meaning in Labor’s “Perfect Storm”: Lessons from the 1981 PATCO Strike

Attention is given to four constructive lessons in employee relations that can be drawn from the 1981 PATCO strike of our traffic controllers. First, separate truth from fiction in a strike’s record and alleged impact. Second, learn the shortcomings of one party of an organization. Third, learn that the “new employee” is best managed by a mix of mutual respect, consideration, and flexibility. Finally, learn that radical organizational change always remains possible, but only if there is first a major overhaul of top leadership.     

Wages and the Composition of Experience

This paper provides evidence on the relation between alternative forms of experience and wages using data drawn from the National Longitudinal Survey of Youth. Prior labor market experience is segmented into mutually exclusive categories based on industry and occupation to examine how subsequent employers value skills acquired on previous jobs. We find that most forms of experience, including tenure at the current job, provide a comparable return. However, the wage return to prior experience in a different occupation and industry is significantly lower. Such “career changes” constitute over half of all prior work experience among workers in their mid-30s.     

Distribution: Japan's Hidden Advantage

For the exporter the distribution channel is critical. It determines the presentation of products to the customer. It is often argued that the complexity of Japanese distribution channels is an important barrier to Western exporters. Whilst this is true, Japanese exporters faced an equal hurdle in exporting to the West. The key to overcoming this hurdle has been a strategy of significant investment by Japanese companies in distribution. This strategy is a central – although often unrecognised – factor in the success of Japanese exporters to the West. It is Japan's "hidden advantage".