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Public Sector Earnings and the Extent of Unionization

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  • Dale Belman
  • John S. Heywood
  • John Lund

Abstract

Many studies have examined the influence of union density (union members as a percentage of all workers) on earnings in the private sector, but few such studies have looked at the public sector. Using data from the 1991 Current Population Survey, this study estimates the determinants of earnings for state and local government employees in both the union and nonunion sectors. The extent of public sector unionization appears to be positively correlated with earnings for both state and local government workers and for those covered and not covered by collective agreements. Although the effect for non-covered employees is smaller than that for covered employees, both effects are larger than those typically found in similar estimates for the private sector. The authors also find that bargaining structure has some influence on earnings, with the most consistent effect being a positive influence of arbitration on the earnings of local government workers.

Suggested Citation

  • Dale Belman & John S. Heywood & John Lund, 1997. "Public Sector Earnings and the Extent of Unionization," ILR Review, Cornell University, ILR School, vol. 50(4), pages 610-628, July.
    • Handle: RePEc:sae:ilrrev:v:50:y:1997:i:4:p:610-628
    DOI: 10.1177/001979399705000404
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    References listed on IDEAS

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    1. repec:eee:labchp:v:2:y:1986:i:c:p:1139-1181 is not listed on IDEAS
    2. Ronald G. Ehrenberg, 1973. "Municipal Government Structure, Unionization, and the Wages of Fire Fighters," ILR Review, Cornell University, ILR School, vol. 27(1), pages 36-48, October.
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    Cited by:

    1. repec:eee:labchp:v:3:y:1999:i:pc:p:3573-3630 is not listed on IDEAS
    2. Seppo Honkapohja & Frank Westermann, 2009. "Pay-setting Systems in Europe: Ongoing Developments and Possible Reforms," Palgrave Macmillan Books, in: Seppo Honkapohja & Frank Westermann (ed.), Designing the European Model, chapter 3, pages 82-121, Palgrave Macmillan.
    3. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630, Elsevier.
    4. David Card, 1998. "Falling Union Membership and Rising Wage Inequality: What's the Connection?," NBER Working Papers 6520, National Bureau of Economic Research, Inc.
    5. Kritkorn Nawakitphaitoon, 2014. "Occupational Human Capital and Wages: The Role of Skills Transferability Across Occupations," Journal of Labor Research, Springer, vol. 35(1), pages 63-87, March.
    6. 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.

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