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Municipal Employment, Municipal Unions, and Demand for Municipal Services

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Author Info
Jeffrey S. Zax
Abstract

Municipal unions may often use their own votes and those of sympathetic fellow citizens to promote increases in demand for municipal services. If successful, this strategy can increase member employment levels without sacrificing compensation. Municipal employee unionization significantly increases levels of annual manhours and employment per capita, and reduces annual hours of workper employee. The net effect of average unionization levels is to increase employees per capita by at least 4.7%, and manhours per capita by at least 3.3%, over levels that would prevail in the absence of municipal unions. These effects occur almost entirely in functions withr ecognized bargaining units. In these functions, employment levels are at least 9.9% higher than they would be in the absence of unionization.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1728.

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Date of creation: Oct 1985
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Publication status: published as Industrial Relations, vol 82, no.1, pp21-31, Winter 1989.
Handle: RePEc:nbr:nberwo:1728

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  1. Jeffrey S. Zax, 1985. "Labor Relations, Wages and Nonwage Compensation in Municipal Employment," NBER Working Papers 1582, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Gramlich, Edward M & Rubinfeld, Daniel L, 1982. "Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 536-60, June. [Downloadable!] (restricted)
  3. Hall, Robert E & Lilien, David M, 1979. "Efficient Wage Bargains under Uncertain Supply and Demand," American Economic Review, American Economic Association, vol. 69(5), pages 868-79, December. [Downloadable!] (restricted)
  4. Ott, Mack, 1980. "Bureaucracy, monopoly, and the demand for municipal services," Journal of Urban Economics, Elsevier, vol. 8(3), pages 362-382, November. [Downloadable!] (restricted)
  5. Warren-Boulton, Frederick R, 1977. "Vertical Control by Labor Unions," American Economic Review, American Economic Association, vol. 67(3), pages 309-22, June. [Downloadable!] (restricted)
  6. Courant, Paul N & Gramlich, Edward M & Rubinfeld, Daniel L, 1979. "Public Employee Market Power and the Level of Government Spending," American Economic Review, American Economic Association, vol. 69(5), pages 806-17, December. [Downloadable!] (restricted)
  7. Farber, Henry S, 1978. "Individual Preferences and Union Wage Determination: The Case of the United Mine Workers," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 923-42, October. [Downloadable!] (restricted)
  8. Inman, Robert P, 1982. "The Economic Case for Limits to Government," American Economic Review, American Economic Association, vol. 72(2), pages 176-83, May. [Downloadable!] (restricted)
  9. Mieszkowski, Peter & Stein, Robert M., 1983. "Trends and prospects in state and local finance," Journal of Urban Economics, Elsevier, vol. 14(2), pages 224-241, September. [Downloadable!] (restricted)
  10. Blair, Douglas H & Crawford, David L, 1984. "Labor Union Objectives and Collective Bargaining," The Quarterly Journal of Economics, MIT Press, vol. 99(3), pages 547-66, August. [Downloadable!] (restricted)
  11. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December. [Downloadable!] (restricted)
  12. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law & Economics, University of Chicago Press, vol. 18(3), pages 617-43, December.
  13. Darold T. Barnum & I. B. Helburn, 1982. "Influencing the electorate: Experience with referenda on public employee bargaining," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 35(3), pages 330-342, April.
  14. Ronald G. Ehrenberg & Joshua L. Schwarz, 1987. "Public Sector Labor Markets," NBER Working Papers 1179, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. Pencavel, John H, 1984. "The Tradeoff between Wages and Employment in Trade Union Objectives," The Quarterly Journal of Economics, MIT Press, vol. 99(2), pages 215-31, May. [Downloadable!] (restricted)
  16. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December. [Downloadable!] (restricted)
  17. Oswald, Andrew J, 1982. "The Microeconomic Theory of the Trade Union," Economic Journal, Royal Economic Society, vol. 92(367), pages 576-95, September. [Downloadable!] (restricted)
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