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The Impact of Unionism on Municipal Expenditures and Revenues

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  • Robert G. Valletta

Abstract

This study tests the hypothesis that municipal unions, through the use of political power and multilateral bargaining power, are able to increase the demand for municipal services. An analysis of data on approximately 700 cities from the 1980 Survey of Governments and Census of Population shows, in both cross-section and fixed effects estimates, that collective bargaining increased expenditures in departments covered by a contract. In contrast, collective bargaining apparently did not affect cities' total expenditures, total revenues, or property taxes.

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  • Robert G. Valletta, 1989. "The Impact of Unionism on Municipal Expenditures and Revenues," ILR Review, Cornell University, ILR School, vol. 42(3), pages 430-442, April.
    • Handle: RePEc:sae:ilrrev:v:42:y:1989:i:3:p:430-442
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    1. repec:eee:labchp:v:3:y:1999:i:pc:p:3573-3630 is not listed on IDEAS
    2. Edward L. Glaeser, 2012. "The Political Risks of Fighting Market Failures: Subversion, Populism and the Government Sponsored Enterprises," NBER Working Papers 18112, National Bureau of Economic Research, Inc.
    3. Randall G. Holcombe & DeEdgra W. Williams, 2008. "The Impact of Population Density on Municipal Government Expenditures," Public Finance Review, , vol. 36(3), pages 359-373, May.
    4. Anne Lauringson, 2010. "Measuring Union Bargaining Power In The Estonian Public Sector," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 72, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    5. Edward L. Glaeser, 2012. "Urban Public Finance," NBER Working Papers 18244, National Bureau of Economic Research, Inc.

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