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Privatization of Refuse Removal and Labor Costs

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  • GARY A. HOOVER
  • JAMES PEOPLES

Abstract

We examine the labor-cost savings associated with privatization by comparing earnings and employment trends of public and private sector refuse workers. Findings suggest that high union earnings for workers in the public sector are a source of labor-cost savings in the refuse industry. Evidence on job changers does not indicate that earnings for this group of workers are a compensating differential. Metropolitan area employment findings suggest that municipalities are less likely to use union refuse workers in the public sector when a relatively small percentage of area residents belong to a union.

Suggested Citation

  • Gary A. Hoover & James Peoples, 2003. "Privatization of Refuse Removal and Labor Costs ," Journal of Labor Research, Transaction Publishers, vol. 24(2), pages 294-305, April.
  • Handle: RePEc:tra:jlabre:v:24:y:2003:i:2:p:294-305
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    Cited by:

    1. James Peoples & Bin Wang, 2007. "Privatization and Labor Cost Savings: Evidence from Health Care Services," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(2), pages 145-157, June.
    2. James Peoples & Bin Wang, 2009. "The influence of privatization on occupational wages," Economics Bulletin, AccessEcon, vol. 29(3), pages 1940-1946.
    3. Henry Ohlsson, 2003. "Ownership and Production Costs: Choosing between Public Production and Contracting-Out in the Case of Swedish Refuse Collection," Fiscal Studies, Institute for Fiscal Studies, vol. 24(4), pages 451-476, December.

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