Advanced Search
MyIDEAS: Login to save this paper or follow this series

Fiscal Institutions and Public Sector Labor Markets

Contents:

Author Info

  • James M. Poterba
  • Kim S. Rueben

Abstract

This paper investigates how state and local fiscal institutions affect the pattern of relative wages between state and local government employees and their private sector counterparts. It focuses on changes in relative wages during the 1979-1986 period. Empirical analysis of data from the Current Population Survey suggests that in places with limitations on local property taxes, and to a lesser extent state-level tax and expenditure caps, public sector wages grew more slowly than the wages paid to comparable workers in the private sector. The differential movement of public sector and private sector wages is particularly pronounced for college-educated women who work in the local public sector. Many of these employees are public school teachers. There is some evidence that the impact of fiscal limits is most pronounced in the years immediately following their adoption, and that the effect of these limits weakens over time.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.nber.org/papers/w6659.pdf
Download Restriction: no

Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6659.

as in new window
Length:
Date of creation: Jul 1998
Date of revision:
Handle: RePEc:nbr:nberwo:6659

Note: PE
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Email:
Web page: http://www.nber.org
More information through EDIRC

Related research

Keywords:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Ronald G. Ehrenberg & Joshua L. Schwarz, 1983. "Public Sector Labor Markets," NBER Working Papers 1179, National Bureau of Economic Research, Inc.
  2. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
  3. Burton Abrams & William Dougan, 1986. "The effects of constitutional restraints on governmental spending," Public Choice, Springer, vol. 49(2), pages 101-116, January.
  4. Katz, L.F. & Krueger, A.B., 1991. "Chances In The Structure Of Wages In The Public And Private Sectors," Harvard Institute of Economic Research Working Papers 1547, Harvard - Institute of Economic Research.
  5. Robert Valletta & Richard B. Freeman, 1988. "Appendix B The NBER Public Sector Collective Bargaining Law Data Set," NBER Chapters, in: When Public Sector Workers Unionize, pages 399-420 National Bureau of Economic Research, Inc.
  6. Ichniowski, Casey & Zax, Jeffrey S, 1991. "Right-to-Work Laws, Free Riders, and Unionization in the Local Public Sector," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 9(3), pages 255-75, July.
  7. James M. Poterba, 1993. "State Responses to Fiscal Crisis: The Effects of Budgetary Institutionsand Politics," NBER Working Papers 4375, National Bureau of Economic Research, Inc.
  8. Jeffrey S. Zax & Casey Ichniowski, 1990. "Bargaining laws and unionization in the local public sector," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 43(4), pages 447-462, April.
  9. Poterba, James M & Rueben, Kim S, 1995. "The Effect of Property-Tax Limits on Wages and Employment in the Local Public Sector," American Economic Review, American Economic Association, vol. 85(2), pages 384-89, May.
  10. Joseph Gyourko & Joseph Tracy, 1989. "Public Sector Bargaining and the Local Budgetary Process," NBER Working Papers 2915, National Bureau of Economic Research, Inc.
  11. Borjas, George J., 1986. "The earnings of state government employees in the United States," Journal of Urban Economics, Elsevier, vol. 19(2), pages 156-173, March.
  12. William J. Moore & Robert J. Newman, 1991. "Government wage differentials in a municipal labor market: The case of Houston Metropolitan Transit workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(1), pages 145-153, October.
  13. repec:fth:prinin:282 is not listed on IDEAS
  14. 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.
  15. James M. Poterba & Kim S. Rueben, 1994. "The Distribution of Public Sector Wage Premia: New Evidence Using Quantile Regression Methods," NBER Working Papers 4734, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ugo Panizza, 1999. "¿Por qué la gente floja gana más dinero? El extraño caso de la prima salarial del sector público," Research Department Publications 4177, Inter-American Development Bank, Research Department.
  2. Daniel Aaronson, 1998. "The effect of school finance reform on population heterogeneity," Working Paper Series, Federal Reserve Bank of Chicago WP-98-11, Federal Reserve Bank of Chicago.
  3. Gabriela Miranda Moriconi & João S. Moura Neto & Nelson Marconi & Paulo Roberto Arvate, 2006. "Evidências Sobre O Comportamento Dos Governos Estaduais Na Determinação Dos Salários Dos Servidores Públicos No Brasil," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of G 135, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  4. Ugo Panizza, 1999. "Why Do Lazy People Make More Money?: The Strange Case of the Public Sector Wage Premium," IDB Publications 6815, Inter-American Development Bank.
  5. Damian Hattingh & James Hodge & Sandrine Rospabé, 2003. "The Impact of Privatisation and Regulatory Reform on Wage Premia in State-Owned Enterprises in South Africa," Working Papers, University of Cape Town, Development Policy Research Unit 03078, University of Cape Town, Development Policy Research Unit.
  6. John Gibson, 2009. "The public sector pay premium, compensating differentials and unions: propensity score matching evidence from Australia, Canada, Great Britain and the United States," Economics Bulletin, AccessEcon, vol. 29(3), pages 2325-2332.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:6659. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.