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Collective Bargaining Laws, Threat Effects, and the Determination of Police Compensation

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  • Ichniowski, Casey
  • Freeman, Richard B
  • Lauer, Harrison

Abstract

This article demonstrates that state collective bargaining laws are important determinants of union and nonunion public employee compensation. State laws that provide stronger bargaining rights and ensure closure to the bargaining process increase the direct effect of police unions on compensation. Moreover, indirect threat effects on the pay of nonunion police also increase with stronger bargaining laws. In each law category investigated, nonunion police receive most of the compensation premium enjoyed by unionized police. Previous studies that have not adequately controlled for these effects of bargaining laws have therefore underestimated the full effect of public-sector unions on compensation. Copyright 1989 by University of Chicago Press.

Suggested Citation

  • 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.
    • Handle: RePEc:ucp:jlabec:v:7:y:1989:i:2:p:191-209
    DOI: 10.1086/298205
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    Cited by:

    1. Kim Mather & Roger Seifert, 2016. "Police pay—contested and contestable," Industrial Relations Journal, Wiley Blackwell, vol. 47(3), pages 204-219, May.
    2. Dhammika Dharmapala & Richard H. McAdams & John Rappaport, 2019. "Collective Bargaining and Police Misconduct: Evidence from Florida," CESifo Working Paper Series 7718, CESifo.
    3. William M. Doerner & William G. Doerner, 2009. "Collective Bargaining and Job Benefits: The Case of Florida Deputy Sheriffs," Working Papers wp2009_12_01, Department of Economics, Florida State University, revised May 2010.
    4. Rebecca M. Blank, 1993. "Public Sector Growth and Labor Market Flexibility: The United States vs. The United Kingdom," NBER Working Papers 4339, National Bureau of Economic Research, Inc.
    5. repec:eee:labchp:v:3:y:1999:i:pc:p:3573-3630 is not listed on IDEAS
    6. Woodbury, Stephen A & Hamermesh, Daniel S, 1992. "Taxes, Fringe Benefits and Faculty," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 287-296, May.
    7. Cunningham, Jamein & Feir, Donn. L. & Gillezeau, Rob, 2021. "Collective Bargaining Rights, Policing, and Civilian Deaths," IZA Discussion Papers 14208, Institute of Labor Economics (IZA).
    8. William M. Doerner & William G. Doerner, 2011. "Collective Bargaining and Job Benefits in Florida Municipal Police Agencies, 2000-2009," Working Papers wp2011_01_02, Department of Economics, Florida State University, revised Oct 2012.
    9. Morck Randall K & Yeung Bernard, 2010. "Corporatism and the Ghost of the Third Way," Capitalism and Society, De Gruyter, vol. 5(3), pages 1-61, December.
    10. 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.
    11. Michael F. Lovenheim, 2009. "The Effect of Teachers' Unions on Education Production: Evidence from Union Election Certifications in Three Midwestern States," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 525-587, October.
    12. Juan C. Botero & Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "The Regulation of Labor," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(4), pages 1339-1382.
    13. Orley Ashenfelter & Dean Hyslop, 2001. "Measuring the Effect of Arbitration on Wage Levels: The Case of Police Officers," ILR Review, Cornell University, ILR School, vol. 54(2), pages 316-328, January.
    14. Ying L. Compton & Angela K. Gore & Susan L. Kulp, 2017. "Compensation design and political risk: the case of city managers," Review of Accounting Studies, Springer, vol. 22(1), pages 109-140, March.
    15. Ahn, Tom & Arcidiacono, Peter, 2004. "Paying to queue: a theory of locational differences in nonunion wages," Journal of Urban Economics, Elsevier, vol. 55(3), pages 565-579, May.
    16. 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).
    17. Rebecca M. Blank, 1994. "Public Sector Growth and Labor Market Flexibility: The United States versus the United Kingdom," NBER Chapters, in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 223-264, National Bureau of Economic Research, Inc.
    18. Dale Belman & John S. Heywood & John Lund, 1997. "Public Sector Earnings and the Extent of Unionization," ILR Review, Cornell University, ILR School, vol. 50(4), pages 610-628, July.

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