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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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    References listed on IDEAS

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    1. William J. Moore & Robert J. Newman, 1985. "The Effects of Right-to-Work Laws: A Review of the Literature," ILR Review, Cornell University, ILR School, vol. 38(4), pages 571-585, July.
    2. Henry S. Farber, 1983. "Right-to-Work Laws and the Extent of Unionization," NBER Working Papers 1136, National Bureau of Economic Research, Inc.
    3. Farber, Henry S, 1984. "Right-to-Work Laws and the Extent of Unionization," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 319-352, July.
    4. David Neumark & Michael L. Wachter, 1995. "Union Effects on Nonunion Wages: Evidence from Panel Data on Industries and Cities," ILR Review, Cornell University, ILR School, vol. 49(1), pages 20-38, October.
    5. Thomas J. Holmes, 1998. "The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders," Journal of Political Economy, University of Chicago Press, vol. 106(4), pages 667-705, August.
    6. Robert Tannenwald, 1997. "State regulatory policy and economic development," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 83-108.
    7. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
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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, pages 451-476.

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