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State Collective Bargaining Laws and Public-Sector Pay

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  • Eric J. Brunner
  • Andrew Ju

Abstract

Using the Public Use Microdata Sample from the 2005 to 2015 American Community Survey, the authors provide new evidence on how state collective bargaining laws affect public-sector wages. To isolate the causal effect of bargaining laws on public-sector pay, they examine wage differentials between otherwise similar public- and private-sector employees located in the same local labor market. They estimate difference-in-differences (DD) models that exploit two sources of plausibly exogenous variation: 1) policy discontinuities along state borders and 2) variation within states in collective bargaining laws in states where the majority of public workers are without collective bargaining rights. Findings show that mandatory collective bargaining laws increase public-sector wages by approximately 5 to 8 percentage points. Results therefore suggest that mandatory collective bargaining laws provide a formal mechanism through which public-sector workers are able to bargain for increased compensation.

Suggested Citation

  • Eric J. Brunner & Andrew Ju, 2019. "State Collective Bargaining Laws and Public-Sector Pay," ILR Review, Cornell University, ILR School, vol. 72(2), pages 480-508, March.
  • Handle: RePEc:sae:ilrrev:v:72:y:2019:i:2:p:480-508
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    Cited by:

    1. Thommen, Yann, 2022. "Reforms of collective bargaining institutions in European Union countries: Bad timing, bad outcomes?," European Journal of Political Economy, Elsevier, vol. 71(C).
    2. Blackburn, McKinley L., 2021. "Are U.S. teacher salaries competitive? Accounting for geography and the retransformation bias in logarithmic regressions," Economics of Education Review, Elsevier, vol. 84(C).

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