This paper evaluates the effects of firm performance and firm characteristics on concession outcomes over the years 1980–87. Across similar firms, the author finds, concessions were inversely related to stock price and employment growth. Concessions were also most likely in small firms, in firms paying high wages, and in firms with relatively low union coverage. The effect of firm performance and firm characteristics on the likelihood of concessions was uniform across concessions of differing severity and was stable in magnitude over the eight-year period.
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