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Teachers' unions and compensation: The impact of collective bargaining on salary schedules and performance pay schemes

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  • West, Kristine Lamm
  • Mykerezi, Elton
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    Abstract

    This study examines the impact that collective bargaining has on multiple dimensions of teacher compensation, including average and starting salaries, early and late returns to experience, returns to graduate degrees, and the incidence of different pay for performance schemes. Using data from the School and Staffing Survey (SASS) and a more recent data set, the Teacher Rules, Roles and Rights (TR3), we find that collective bargaining has a significant impact on all aspects of current, qualification-specific salary schedules. Further, we find some evidence that bargaining impacts the design of performance pay plans. Specifically, unions tend to encourage teacher bonuses that are based on additional qualifications or duties, but discourage bonuses that directly reward improved student test scores.

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    File URL: http://www.sciencedirect.com/science/article/B6VB9-50NBNVR-2/2/ad572f9159cd845120a00b4d145bf3e4
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    Bibliographic Info

    Article provided by Elsevier in its journal Economics of Education Review.

    Volume (Year): 30 (2011)
    Issue (Month): 1 (February)
    Pages: 99-108

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    Handle: RePEc:eee:ecoedu:v:30:y:2011:i:1:p:99-108

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    Web page: http://www.elsevier.com/locate/econedurev

    Related research

    Keywords: Teacher salaries Educational finance Resource allocation;

    References

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    1. Freeman, Richard B, 1986. "Unionism Comes to the Public Sector," Journal of Economic Literature, American Economic Association, vol. 24(1), pages 41-86, March.
    2. Dale Ballou & Michael Podgursky, 2002. "Returns to Seniority among Public School Teachers," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 892-912.
    3. John W. Budd, 2004. "Non-Wage Forms of Compensation," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 597-622, October.
    4. Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 1998. "Teachers, Schools, and Academic Achievement," NBER Working Papers 6691, National Bureau of Economic Research, Inc.
    5. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
    6. Belfield, Clive R. & Heywood, John S., 2008. "Performance pay for teachers: Determinants and consequences," Economics of Education Review, Elsevier, vol. 27(3), pages 243-252, June.
    7. Ballou, Dale, 2001. "Pay for performance in public and private schools," Economics of Education Review, Elsevier, vol. 20(1), pages 51-61, February.
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    Cited by:
    1. Brown, Jason L. & Fisher, Joseph G. & Sooy, Matthew & Sprinkle, Geoffrey B., 2014. "The effect of rankings on honesty in budget reporting," Accounting, Organizations and Society, Elsevier, vol. 39(4), pages 237-246.

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