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The Effect of Final-Offer Arbitration on the Salaries of Municipal Police Officers in New Jersey

Author

Listed:
  • David E. Bloom

    (Princeton University)

Abstract

This study investigates the effect of final-offer arbitration on the salaries of municipal police officers in New Jersey using a regression model to control for the possible biases introduced by non-random use of the procedure. The results indicate that, despite the greater fraction of union victories than employer victories under final-offer arbitration, arbitrated salary settlements are not significantly higher or lower than nonarbitrated settlements. The results also contain evidence of asymmetric behavior by the parties under final-offer arbitration with the unions appearing more risk averse than the employers.

Suggested Citation

  • David E. Bloom, 1980. "The Effect of Final-Offer Arbitration on the Salaries of Municipal Police Officers in New Jersey," Working Papers 509, Princeton University, Department of Economics, Industrial Relations Section..
  • Handle: RePEc:pri:indrel:129
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    More about this item

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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