“…Ashenfelter and Johnson, 1969;McConnell, 1990), union concentration (e.g., Korpi and Shalev, 1979;Lindvall, 2013), and political composition of the parliament (e.g., Hibbs, 1978;Humphries, 1990). On the other hand, the theoretical literature on bargaining has explained labor strikes in terms of irrational behavior (e.g., Bishop, 1964) or asymmetric information (e.g., Hayes, 1984;Gary-Bobo and Jaaidane, 2014;Brunnschweiler et al, 2014). To our knowledge, our paper is first in establishing a theoretically and empirically consistent link between income inequality and industrial conflict.…”