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Unionism Comes to the Public Sector

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Richard B. Freeman

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Abstract

This paper argues that public sector labor relations is best understood in a framework that focuses on unions' ability to shift demand curves rather than to raise wages, as is the case in the private sector. It reviews the public sector labor relations literature and finds that: (i) public sector unionism has flourished as a result of changes in laws; (2) the effects of public sector unions on wages are likely to have been underestimated; (3) public sector unions have a somewhat different effect on wage structures than do private sector unions; (4) compulsory arbitration reduces strikes with no clearcut impact on the level of wage settlements; (5) public sector unions have diverse effects on non-wage outcomes as do private sector unions. In terms of evaluating public sector unionism, the paper argues that by raising both the cost of public services (taxes) and the amount of services public sector unionism involves a different welfare calculus than private sector unionism.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1452.

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Date of creation: Jun 1986
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Handle: RePEc:nbr:nberwo:1452

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  1. Orley Ashenfelter & Dean Hyslop, 1999. "Measuring the Effect of Arbitration on Wage Levels: The Case of Police Officers," Working Papers 800, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  2. Alberto Chong & Florencio Lopez-de-Silanes, 2004. "Privatization in Mexico," RES Working Papers 4373, Inter-American Development Bank, Research Department. [Downloadable!]
    Other versions:
  3. Laszlo Goerke, 1998. "Privatization and efficiency wages," Journal of Economics, Springer, vol. 67(3), pages 243-264, October. [Downloadable!] (restricted)
  4. Robert J. Lalonde & Gérard Marschke & Kenneth Troske, 1996. "Using Longitudinal Data on Establishments to Analyze the Effects of Union Organizing Campaigns in the United States," Annales d'Economie et de Statistique, ADRES, issue 41-42, pages 08, Janvier-J. [Downloadable!]
  5. Henry S. Farber, 1987. "The Evolution of Public Sector Bargaining Laws," NBER Working Papers 2361, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Michael Abbott & Orley Ashenfelter, 1974. "Labor Supply, Commodity Demand, and the Allocation of Time," Working Papers 437, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  7. Daniele Checchi & Claudio Lucifora, 2002. "Unions and labour market institutions in Europe," Departemental Working Papers 2002-16, Department of Economics University of Milan Italy. [Downloadable!]
    Other versions:
  8. Richard B. Freeman, 1985. "How do Public Sector Wages and Employment Respond to Economic Conditions," NBER Working Papers 1653, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. Jeffrey S. Zax, 1985. "Municipal Employment, Municipal Unions, and Demand for Municipal Services," NBER Working Papers 1728, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. William Duncombe & John Yinger, 2001. "Does School Consolidation Cut Costs?," Center for Policy Research Working Papers 33, Center for Policy Research, Maxwell School, Syracuse University. [Downloadable!]
  11. Richard B. Freeman, 1987. "Contraction and Expansion: The Divergence of Private Sector and Public Sector Unionism in tht U.S," NBER Working Papers 2399, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. repec:fth:prinin:421 is not listed on IDEAS
  13. repec:fth:prinin:437 is not listed on IDEAS
  14. David G. Blanchflower, 2006. "A Cross-Country Study of Union Membership," IZA Discussion Papers 2016, Institute for the Study of Labor (IZA). [Downloadable!]
  15. Bahman Bahrami & John Bitzan & Jay Leitch, 2009. "Union Worker Wage Effect in the Public Sector," Journal of Labor Research, Springer, vol. 30(1), pages 35-51, March. [Downloadable!] (restricted)
  16. Henry S. Farber & Bruce Western, 2000. "Round Up The Usual Suspects: The Decline of Unions in The Private Sector, 1973-1998," Working Papers 816, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  17. Alberto Chong & Virgilio Galdo, 2003. "Streamlining and Privatization Prices in the Telecommunications Industry," RES Working Papers 4319, Inter-American Development Bank, Research Department. [Downloadable!]
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  18. Henry S. Farber & Max H. Bazerman, 1989. "Divergent Expectations as a Cause of Disagreement in Bargaining: Evidence from a Comparison of Arbitration Schemes."," NBER Working Papers 2139, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  19. Chong, Alberto & Lopez-de-Silanes, Florencio, 2002. "Privatization and labor force restructuring around the world," Policy Research Working Paper Series 2884, The World Bank. [Downloadable!]
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  20. Alberto Chong & Virgilio Galdo, 2003. "La racionalización y los precios de la privatización en el sector de las telecomunicaciones," RES Working Papers 4320, Inter-American Development Bank, Research Department. [Downloadable!]
  21. Brams, Steven J. & Kilgour, D. Marc & Weber, Shlomo, 1989. "Sequential Arbitration Procedures," Working Papers 89-13, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
    Other versions:
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