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Bargaining Unit Composition and the Returns to Education and Tenure

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  • Linda Babcock
  • John Engberg

Abstract

Using data on collectively bargained outcomes in Pennsylvania schools in 1983–89, the authors find a strong relationship between the returns to education and tenure and the distribution of those attributes in the bargaining unit. For instance, the higher the median level of teacher tenure in a district, the greater was the pay gap between teachers with low and high tenure. This relationship was very strong in districts with vigorous community support for union activities and weak or nonexistent in districts with low union support. The authors argue that, consistent with the “median voter model,†the unions in this study pushed hardest to advance the interests of their typical members, and that they were most effective in doing so where the community was generally supportive of unions.

Suggested Citation

  • Linda Babcock & John Engberg, 1999. "Bargaining Unit Composition and the Returns to Education and Tenure," ILR Review, Cornell University, ILR School, vol. 52(2), pages 163-178, January.
    • Handle: RePEc:sae:ilrrev:v:52:y:1999:i:2:p:163-178
    DOI: 10.1177/001979399905200201
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    References listed on IDEAS

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    1. Joseph G. Altonji & Robert A. Shakotko, 1987. "Do Wages Rise with Job Seniority?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(3), pages 437-459.
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    3. Richard B. Freeman & Robert Valletta, 1988. "The Effects of Public Sector Labor Laws on Labor Market Institutions and Outcomes," NBER Chapters, in: When Public Sector Workers Unionize, pages 81-106, National Bureau of Economic Research, Inc.
    4. Richard B. Freeman & Casey Ichniowski, 1988. "When Public Sector Workers Unionize," NBER Books, National Bureau of Economic Research, Inc, number free88-1, March.
    5. Currie, Janet & McConnell, Sheena, 1991. "Collective Bargaining in the Public Sector: The Effect of Legal Structure on Dispute Costs and Wages," American Economic Review, American Economic Association, vol. 81(4), pages 693-718, September.
    6. Freeman, Richard B. & Ichniowski, Casey (ed.), 1988. "When Public Sector Workers Unionize," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261669, December.
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    Cited by:

    1. John V. Winters, 2011. "Teacher Salaries and Teacher Unions: A Spatial Econometric Approach," ILR Review, Cornell University, ILR School, vol. 64(4), pages 747-764, July.
    2. Rose, Heather & Sonstelie, Jon, 2010. "School board politics, school district size, and the bargaining power of teachers' unions," Journal of Urban Economics, Elsevier, vol. 67(3), pages 438-450, May.
    3. Brunner, Eric J. & Squires, Tim, 2013. "The bargaining power of teachers’ unions and the allocation of school resources," Journal of Urban Economics, Elsevier, vol. 76(C), pages 15-27.
    4. Kristine L. West, 2015. "Teachers’ Unions, Compensation, and Tenure," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(2), pages 294-320, April.

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