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Should We Organize? Effects of Faculty Unionism on Academic Compensation

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  • Richard B. Freeman

Abstract

This paper uses the American Association of University Professors surveys for the period 1965 to 1976 to examine the effect of faculty unionism on faculty pay. It compares estimated effects of unionism on compensation from cross-section regressions of faculty pay on union organization and from a longitudinal model designed to correct cross-section estimates for "unobserved characteristics" of schools that are correlated with unionism. The major findings are that: 1. unionism raises faculty pay but that the extent of the effect varies greatly by estimating model and time period covered; 2.the years a school has been organized has a stronger effect on pay than the standard 0-1 union dummy variable; 3. unionism raises the fringe benefit share of compensation; 4. the estimated coefficient on faculty unionism in cross-section regressions overstates the union impact because unionized schools tend to have been higher paying even before organization.

Suggested Citation

  • Richard B. Freeman, 1978. "Should We Organize? Effects of Faculty Unionism on Academic Compensation," NBER Working Papers 0301, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:0301
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    Cited by:

    1. Woodbury, Stephen A & Hamermesh, Daniel S, 1992. "Taxes, Fringe Benefits and Faculty," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 287-296, May.
    2. Mary Ellen Benedict, 1999. "The Union Effect on the Earnings Distribution in Higher Education in Ohio," The American Economist, Sage Publications, vol. 43(1), pages 57-70, March.
    3. Schenk, Tom, Jr., 2007. "The effects of graduate-student unionization," ISU General Staff Papers 2007010108000015881, Iowa State University, Department of Economics.
    4. Steven Henson & John Krieg & Charles Wassell & David Hedrick, 2012. "Collective Bargaining and Community College Faculty: What Is the Wage Impact?," Journal of Labor Research, Springer, vol. 33(1), pages 104-117, March.
    5. Kim Sosin & Janet Rives & Janet West, 1998. "Unions and Gender Pay Equity in Academe: A Study of U.S. Institutions," Feminist Economics, Taylor & Francis Journals, vol. 4(2), pages 25-45.
    6. Stephen R. Porter, 2013. "The Causal Effect of Faculty Unions on Institutional Decision-Making," ILR Review, Cornell University, ILR School, vol. 66(5), pages 1192-1211, October.

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