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Measuring the Effects of Arbitration on Wage Levels: The Case of Police Officers

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  • Orley Ashenfelter
  • Dean Hyslop

Abstract

In this paper we provide an empirical evaluation of the effect that the provision of an arbitration statute has on the wage levels of police officers. We analyze the effect of arbitration on wages by comparing wage levels across political jurisdictions and over time using a sample of states. Two complementary data sources are used: panel data on state level wages of police officers, and individual level data on police officers from Decennial Censuses. The empirical results from both data sets are remarkably consistent and provide no robust evidence that the presence of arbitration statues has a consistent effect on overall wage levels. On average, the effect of arbitration is approximately zero, although there is substantial heterogeneity in the estimated effects across states.

Suggested Citation

  • Orley Ashenfelter & Dean Hyslop, 1999. "Measuring the Effects of Arbitration on Wage Levels: The Case of Police Officers," NBER Working Papers 7294, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:7294
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    1. Freeman, Richard B, 1986. "Unionism Comes to the Public Sector," Journal of Economic Literature, American Economic Association, vol. 24(1), pages 41-86, March.
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    3. Ichniowski, Casey & Freeman, Richard B & Lauer, Harrison, 1989. "Collective Bargaining Laws, Threat Effects, and the Determination of Police Compensation," Journal of Labor Economics, University of Chicago Press, vol. 7(2), pages 191-209, April.
    4. Freeman, Richard B. & Ichniowski, Casey (ed.), 1988. "When Public Sector Workers Unionize," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261669.
    5. Henry S. Farber & Harry C. Katz, 1979. "Interest Arbitration, Outcomes, and the Incentive to Bargain," ILR Review, Cornell University, ILR School, vol. 33(1), pages 55-63, October.
    6. Robert Valletta & Richard B. Freeman, 1988. "Appendix B: The NBER Public Sector Collective Bargaining Law Data Set," NBER Chapters, in: When Public Sector Workers Unionize, pages 399-420, National Bureau of Economic Research, Inc.
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    1. repec:pri:indrel:dsp01zk51vg782 is not listed on IDEAS
    2. Richard P. Chaykowski, 2019. "Time to Tweak or Re-boot? Assessing the Interest Arbitration Process in Canadian Industrial Relations," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 539, April.
    3. John H. Tyler & Jeffrey R. Kling, 2004. "Prison-Based Education and Re-Entry into the Mainstream Labor Market," Working Papers 12, Princeton University, Department of Economics, Industrial Relations Section..
    4. Thomas Kochan & David B. Lipsky & Mary Newhart & Alan Benson, 2010. "The Long Haul Effects of Interest Arbitration: The Case of New York State's Taylor Law," ILR Review, Cornell University, ILR School, vol. 63(4), pages 565-584, July.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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