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Measuring the Effect of Arbitration on Wage Levels: The Case of Police Officers

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Author Info

  • Orley Ashenfelter
  • Dean Hyslop

Abstract

The authors empirically evaluate how the provision of an arbitration statute affects police officers' wages by comparing wage levels across political jurisdictions and over time using a sample of states. Two complementary data sources are used: panel data for the years 1961-92 on state-level wages of police officers, and individual-level data on police officers from the 1970, 1980, and 1990 Decennial Censuses. The empirical results from both data sets are remarkably consistent and provide no robust evidence that the presence of arbitration statutes systematically affected overall wage levels. On average, the effect of arbitration was approximately zero, although the authors find substantial heterogeneity in the estimated effects across states. (Author's abstract.)

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File URL: http://arks.princeton.edu/ark:/88435/dsp01qj72p713b
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Bibliographic Info

Paper provided by Princeton University, Department of Economics, Industrial Relations Section. in its series Working Papers with number 800.

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Date of creation: Jul 1999
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Handle: RePEc:pri:indrel:dsp01qj72p713b

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Related research

Keywords: empirical evaluation; arbitration statute; wage levels; police officers;

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References

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  1. Ichniowski, Casey & Freeman, Richard B & Lauer, Harrison, 1989. "Collective Bargaining Laws, Threat Effects, and the Determination of Police Compensation," Journal of Labor Economics, University of Chicago Press, vol. 7(2), pages 191-209, April.
  2. Freeman, Richard B, 1986. "Unionism Comes to the Public Sector," Journal of Economic Literature, American Economic Association, vol. 24(1), pages 41-86, March.
  3. Henry S. Farber & Harry C. Katz, 1979. "Interest arbitration, outcomes, and the incentive to bargain," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 33(1), pages 55-63, October.
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Cited by:
  1. John H. Tyler & Jeffrey R. Kling, 2004. "Prison-Based Education And Re-Entry Into The Mainstream Labor Market," Working Papers 2004-10, Brown University, Department of Economics.

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