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Estimating the Union Wage Effect for Public School Teachers When All Teachers Are Unionized

Author

Listed:
  • Robert J. Lemke

    (Department of Economics and Business, Lake Forest College)

Abstract

The purpose of this paper is to quantify, as best as possible, the union wage effect achieved by the teachers' unions in Pennsylvania. As the legal right for local teachers' organizations to collectively bargain remains controlled by state legislatures, it tends to be the case that either all contracts in a state are collectively bargained locally or none are. Consequently, a wage regression cannot separately identify the union wage effect from a state-wide compensating differential. Instead of relying on interstate salary variation, therefore, intrastate salary variation will be analyzed. In particular, the minimum salary paid across a small group of geographically close, non-urban, and relatively homogeneous school districts will be taken as an upper bound on the competitive teacher salary for all such districts. This upper bound will then be used to place a lower bound on the union rent paid by each district.

Suggested Citation

  • Robert J. Lemke, 2004. "Estimating the Union Wage Effect for Public School Teachers When All Teachers Are Unionized," Eastern Economic Journal, Eastern Economic Association, vol. 30(2), pages 273-291, Spring.
    • Handle: RePEc:eej:eeconj:v:30:y:2004:i:2:p:273-291
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume30/V30N2P273_291.pdf
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    Citations

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    Cited by:

    1. Manabu Nose, 2017. "Estimation of drivers of public education expenditure: Baumol’s effect revisited," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(3), pages 512-535, June.
    2. Kingdon, Geeta & Teal, Francis, 2010. "Teacher unions, teacher pay and student performance in India: A pupil fixed effects approach," Journal of Development Economics, Elsevier, vol. 91(2), pages 278-288, March.
    3. Eunice S. Han, 2020. "The Myth of Unions’ Overprotection of Bad Teachers: Evidence from the District–Teacher Matched Data on Teacher Turnover," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(2), pages 316-352, April.
    4. Jacob Fowles, 2016. "Salaries in Space," Public Finance Review, , vol. 44(4), pages 523-548, July.

    More about this item

    Keywords

    Teacher; Union; Wage;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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