Bargaining Unit Composition and the Returns to Education and Tenure

Posted: 4 Feb 1999

See all articles by Linda Babcock

Linda Babcock

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

John Engberg

RAND Corporation

Abstract

Using data on collectively bargained outcomes in Pennsylvania schools in 1983-89, the authors find a strong relationship between the returns to education and tenure and the distribution of those attributes in the bargaining unit. For instance, the higher the median level of teacher tenure in a district, the greater was the pay gap between teachers with low and high tenure. This relationship was very strong in districts with vigorous community support for union activities and weak or non-existent in districts with low union support. The authors argue that, consistent with the "median voter model," the unions in this study pushed hardest to advance the interests of their typical members, and that they were most effective in doing so where the community was generally supportive of unions.

JEL Classification: J31, J51

Suggested Citation

Babcock, Linda C. and Engberg, John B., Bargaining Unit Composition and the Returns to Education and Tenure. Available at SSRN: https://ssrn.com/abstract=137517

Linda C. Babcock (Contact Author)

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States
412-268-8789 (Phone)
412-268-7036 (Fax)

John B. Engberg

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States
412 683 2300 (Phone)

HOME PAGE: http://www.rand.org

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