Labor Disputes and Worker Productivity

Abstract

We implement a propensity score matching technique to present the first evidence on the impact of labor supply decisions during labor disputes on worker productivity in the context of professional sports. In particular, we utilize a unique natural experiment from the 2012-13 National Hockey League (NHL) lockout, during which approximately 200 players decided to play overseas while the rest stayed in North America. We separate the players based on their nationality and investigate the effect of playing abroad on post-lockout player performance. We find limited evidence of enhanced productivity among European players, and no evidence of a benefit or drawback for North American players. The lack of consistent productivity impact is in line with literature in industries with large labor rents, and we propose several additional explanations within the context of professional hockey. Our study contributes to the general understanding of the impact of employer-initiated work stoppage on labor productivity.