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Union Effects on Municipal Employment and Wages: A Longitudinal Approach

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  • Valletta, Robert G

Abstract

This article examines municipal union employment and wage effects in a sample of police, fire, sanitation, streets and highways, and finance and control departments from approximately 900 U.S. cities during 1977-80. Cross-section results for 1980 suggest positive union contract effects on fire fighter and sanitation employment and wages, consistent with demand shifts due to union political influence in municipal bargaining. The author then models potential omitted variables as nonstationary fixed effects and applies longitudinal models to estimation of employment and wage changes between 1977 and 1980. The longitudinal results provide little support for the demand shift hypothesis. Copyright 1993 by University of Chicago Press.

Suggested Citation

  • Valletta, Robert G, 1993. "Union Effects on Municipal Employment and Wages: A Longitudinal Approach," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 545-574, July.
  • Handle: RePEc:ucp:jlabec:v:11:y:1993:i:3:p:545-74
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    Cited by:

    1. Falch, Torberg & Strom, Bjarne, 2007. "Wage bargaining and monopsony," Economics Letters, Elsevier, vol. 94(2), pages 202-207, February.
    2. Feiveson, Laura, 2015. "General revenue sharing and public sector unions," Journal of Public Economics, Elsevier, vol. 125(C), pages 28-45.
    3. Eguchi, Kyota, 2002. "Unions as commitment devices," Journal of Economic Behavior & Organization, Elsevier, vol. 47(4), pages 407-421, April.
    4. Bahman Bahrami & John Bitzan & Jay Leitch, 2009. "Union Worker Wage Effect in the Public Sector," Journal of Labor Research, Springer, vol. 30(1), pages 35-51, March.
    5. William C. Horrace & Kurt E. Schnier, 2010. "Fixed-Effect Estimation of Highly Mobile Production Technologies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1432-1445.
    6. Kyota Eguchi, 2000. "Unions, Job Security, and Incentives of Workers," CIRJE F-Series CIRJE-F-91, CIRJE, Faculty of Economics, University of Tokyo.
    7. repec:eee:labchp:v:3:y:1999:i:pc:p:3573-3630 is not listed on IDEAS
    8. David Brownstone & Robert Valletta, 2001. "The Bootstrap and Multiple Imputations: Harnessing Increased Computing Power for Improved Statistical Tests," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 129-141, Fall.
    9. Anne Lauringson, 2010. "Measuring Union Bargaining Power In The Estonian Public Sector," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 72, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    10. Falch, Torberg, 2001. "Collective bargaining in the public sector and the role of budget determination," European Journal of Political Economy, Elsevier, vol. 17(1), pages 75-99, March.
    11. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
    12. Enikolopov, Ruben, 2014. "Politicians, bureaucrats and targeted redistribution," Journal of Public Economics, Elsevier, vol. 120(C), pages 74-83.
    13. Cunningham, Wendy V., 2001. "Breadwinner or caregiver? - how household role affectslabor choices in Mexico," Policy Research Working Paper Series 2743, The World Bank.

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