Does Mediation-Arbitration Reduce Arbitration Rates? Evidence from a Natural Experiment

To study the effect of the introduction of mediation-arbitration as a dispute resolution procedure on interest arbitration, the authors exploit a natural experiment in the arbitration institutions for police and firefighter sectors in the Canadian province of Ontario. They obtain estimates using a difference-in-difference estimator. Results show that the introduction of mediation-arbitration is significantly associated with increased use of arbitration by firefighters relative to the police. The article also draws on interviews with stakeholders to help explain the mechanisms that contribute to the increase in arbitration rates.