Strike, Wage Bargaining and the Cost of Conflict

ABSTRACT The right to strike is protected under both EU and Norwegian law, reflecting the principle that participation in collective action should not have long‐term consequences for workers' careers. Following a major strike in 2016, the Norwegian hotel and restaurant sector introduced rights to local wage bargaining, which had previously been negotiated only at the central level. Using Norwegian administrative linked employer–employee data for 2015–2019, we compare outcomes for hotel and restaurant workers with those in retail trade, where wages remained centrally determined. We find that, among workplaces covered by collective agreements, hotel and restaurant workers experienced little change in average wages but increased wage compression at the top. However, the striking workers themselves faced lower hourly wages, weaker labour market attachment, and a higher likelihood of receiving welfare benefits. These findings suggest that, for participants, the strike entailed lasting economic costs beyond those incurred during the dispute itself.