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Public sector unions and government size

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  • Michael L. Marlow

Abstract

Although various studies have concluded that public sector unions raise wages and employment for members, very little research has examined whether public sector unionism influences the overall size of state and local government. The relationship is examined within a pooled data set on all states over selected years during 2003--2010. Wide variation in union membership trends across states provides a rich data set to examine. Empirical results indicate that 10 percentage point increases in public union membership raise several measures of government size within a range of 2.25--4.25%. A similar increase in union membership is estimated to raise annual real wages by $1603 for the average government worker, which amounts to a rise of 3.48%.

Suggested Citation

  • Michael L. Marlow, 2013. "Public sector unions and government size," Applied Economics Letters, Taylor & Francis Journals, vol. 20(5), pages 466-470, March.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:5:p:466-470
    DOI: 10.1080/13504851.2012.714058
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    References listed on IDEAS

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    1. Marlow, Michael L & Orzechowski, William, 1996. "Public Sector Unions and Public Spending," Public Choice, Springer, vol. 89(1-2), pages 1-16, October.
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    5. Orley Ashenfelter, 1971. "The Effect of Unionization on Wages in the Public Sector: The Case of Fire Fighters," ILR Review, Cornell University, ILR School, vol. 24(2), pages 191-202, January.
    6. Stephen J. Trejo, 1991. "Public Sector Unions and Municipal Employment," ILR Review, Cornell University, ILR School, vol. 45(1), pages 166-180, October.
    7. Edward M. Gramlich & Daniel L. Rubinfeld, 1982. "Voting on public spending: Differences between public employees, transfer recipients, and private workers," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 1(4), pages 516-533.
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    Cited by:

    1. Michael L. Marlow, 2013. "Do public sector unions erode business climates?," Applied Economics Letters, Taylor & Francis Journals, vol. 20(15), pages 1413-1417, October.

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