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Teachers' unions and compensation: The impact of collective bargaining on salary schedules and performance pay schemes

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  • West, Kristine Lamm
  • Mykerezi, Elton

Abstract

This study examines the impact that collective bargaining has on multiple dimensions of teacher compensation, including average and starting salaries, early and late returns to experience, returns to graduate degrees, and the incidence of different pay for performance schemes. Using data from the School and Staffing Survey (SASS) and a more recent data set, the Teacher Rules, Roles and Rights (TR3), we find that collective bargaining has a significant impact on all aspects of current, qualification-specific salary schedules. Further, we find some evidence that bargaining impacts the design of performance pay plans. Specifically, unions tend to encourage teacher bonuses that are based on additional qualifications or duties, but discourage bonuses that directly reward improved student test scores.

Suggested Citation

  • West, Kristine Lamm & Mykerezi, Elton, 2011. "Teachers' unions and compensation: The impact of collective bargaining on salary schedules and performance pay schemes," Economics of Education Review, Elsevier, vol. 30(1), pages 99-108, February.
  • Handle: RePEc:eee:ecoedu:v:30:y:2011:i:1:p:99-108
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    References listed on IDEAS

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    1. Steven G. Rivkin & Eric A. Hanushek & John F. Kain, 2005. "Teachers, Schools, and Academic Achievement," Econometrica, Econometric Society, vol. 73(2), pages 417-458, March.
    2. Ballou, Dale, 2001. "Pay for performance in public and private schools," Economics of Education Review, Elsevier, vol. 20(1), pages 51-61, February.
    3. Dale Ballou & Michael Podgursky, 2002. "Returns to Seniority among Public School Teachers," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 892-912.
    4. Caroline Minter Hoxby, 1996. "How Teachers' Unions Affect Education Production," The Quarterly Journal of Economics, Oxford University Press, vol. 111(3), pages 671-718.
    5. Belfield, Clive R. & Heywood, John S., 2008. "Performance pay for teachers: Determinants and consequences," Economics of Education Review, Elsevier, vol. 27(3), pages 243-252, June.
    6. Freeman, Richard B, 1986. "Unionism Comes to the Public Sector," Journal of Economic Literature, American Economic Association, vol. 24(1), pages 41-86, March.
    7. John W. Budd, 2004. "Non-Wage Forms of Compensation," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 597-622, October.
    8. Dan D. Goldhaber & Dominic J. Brewer, 1997. "Why Don't Schools and Teachers Seem to Matter? Assessing the Impact of Unobservables on Educational Productivity," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 505-523.
    9. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-1177, September.
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    Citations

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    Cited by:

    1. Brown, Jason L. & Fisher, Joseph G. & Sooy, Matthew & Sprinkle, Geoffrey B., 2014. "The effect of rankings on honesty in budget reporting," Accounting, Organizations and Society, Elsevier, vol. 39(4), pages 237-246.
    2. Kristine L. West, 2014. "New Measures of TeachersÕ Work Hours and Implications for Wage Comparisons," Education Finance and Policy, MIT Press, vol. 9(3), pages 231-263, July.
    3. repec:bla:coecpo:v:36:y:2018:i:1:p:93-115 is not listed on IDEAS
    4. Mario Coccia & Igor Benati, 2017. "What is the relation between public manager compensation and government effectiveness? An explorative analysis with public management implications," quaderni IRCrES 201701, Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    5. Brunner, Eric J. & Squires, Tim, 2013. "The bargaining power of teachers’ unions and the allocation of school resources," Journal of Urban Economics, Elsevier, vol. 76(C), pages 15-27.
    6. Cowen, Joshua M. & Strunk, Katharine O., 2015. "The impact of teachers’ unions on educational outcomes: What we know and what we need to learn," Economics of Education Review, Elsevier, vol. 48(C), pages 208-223.
    7. Kristine L. West, 2015. "Teachers’ Unions, Compensation, and Tenure," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(2), pages 294-320, April.

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