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Measuring the effect of arbitration on wage levels: The case of police officers

  • Orley Ashenfelter
  • Dean Hyslop

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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Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

Volume (Year): 54 (2001)
Issue (Month): 2 (January)
Pages: 316-328

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Handle: RePEc:ilr:articl:v:54:y:2001:i:2:p:316-328
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  1. Richard B. Freeman, 1984. "Unionism Comes to the Public Sector," NBER Working Papers 1452, National Bureau of Economic Research, Inc.
  2. Ichniowski, Casey & Freeman, Richard Barry & Lauer, Harrison, 1989. "Collective Bargaining Laws, Threat Effects, and the Determination of Police Compensation," Scholarly Articles 4631949, Harvard University Department of Economics.
  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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