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Unions without rents: the curious economics of faculty unions

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  • Arthur J. Hosios
  • Aloysius Siow

Abstract

. We show that Canadian faculty unions have had no effect on university revenues, only a small positive effect on earnings, a negative effect on research output, and lead to earnings redistributions across disciplines and ranks. We argue that faculty unions have a negligible positive (and often negative) effect on average faculty wages, because a union that promotes the median faculty member's welfare negotiates wage redistributions and more onerous teaching conditions, despite the negative impact these changes have on research output. Average wages may rise, but only because non‐unionized universities trade off wages against the non‐pecuniary benefits from research and teaching. JEL classification: I20, J51, J54 Syndicats sans rentes: l’économie singulière des syndicats de professeurs d’université. Les auteurs montrent que les syndicats canadiens de professeurs d’université n’ont pas eu d’effet sur les revenus des universités, ont eu seulement un petit effet positif sur les gains, un effet négatif sur la production de recherche, et qu’ils ont entraîné une redistribution des gains entre disciplines et entre les professeurs de divers rangs. On suggère que les syndicats de professeurs ont eu un effet négligeable (positif mais souvent négatif) sur le salaire moyen des professeurs parce qu’un syndicat qui s’attache à promouvoir le mieux‐être du professeur médian négocie des redistributions de salaires et des tâches d’enseignement plus lourdes même si ces changements ont un effet négatif sur la production de résultats de recherche. Les salaires moyens peuvent croître mais seulement parce que les universités non‐syndiquées négocient des avantages non‐ pécuniaires portant sur la recherche et l’enseignement en compensation pour des salaires moindres.

Suggested Citation

  • Arthur J. Hosios & Aloysius Siow, 2004. "Unions without rents: the curious economics of faculty unions," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(1), pages 28-52, February.
    • Handle: RePEc:wly:canjec:v:37:y:2004:i:1:p:28-52:a
    DOI: 10.1111/j.0008-4085.2003.0002.x
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    References listed on IDEAS

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    1. Grossman, Gene M, 1983. "Union Wages, Temporary Layoffs, and Seniority," American Economic Review, American Economic Association, vol. 73(3), pages 277-290, June.
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    7. Chamberlain, Gary, 1982. "Multivariate regression models for panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 5-46, January.
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    Cited by:

    1. Schenk, Tom, Jr., 2007. "The effects of graduate-student unionization," ISU General Staff Papers 2007010108000015881, Iowa State University, Department of Economics.
    2. Steven Henson & John Krieg & Charles Wassell & David Hedrick, 2012. "Collective Bargaining and Community College Faculty: What Is the Wage Impact?," Journal of Labor Research, Springer, vol. 33(1), pages 104-117, March.
    3. James B. Davies & Martin G. Kocher & Matthias Sutter, 2008. "Economics research in Canada: a long‐run assessment of journal publications," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(1), pages 22-45, February.
    4. Casey Warman & Frances Woolley & Christopher Worswick, 2010. "The evolution of male‐female earnings differentials in Canadian universities,1970–2001," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(1), pages 347-372, February.
    5. David W. Hedrick & Steven E. Henson & John M. Krieg & Charles S. Wassell Jr., 2011. "Is There Really a Faculty Union Salary Premium?," ILR Review, Cornell University, ILR School, vol. 64(3), pages 558-575, April.
    6. Felice Martinello, 2006. "University Revenues and Faculty Salaries in Ontario: 1970/71­2003/04," Canadian Public Policy, University of Toronto Press, vol. 32(4), pages 349-372, December.
    7. Felice Martinello, 2009. "Faculty Salaries in Ontario: Compression, Inversion, and the Effects of Alternative Forms of Representation," ILR Review, Cornell University, ILR School, vol. 63(1), pages 128-145, October.
    8. Joel Waldfogel, 2016. "Faculty Preferences over Unionization: Evidence from Open Letters at Two Research Universities," NBER Working Papers 22149, National Bureau of Economic Research, Inc.
    9. Stephen R. Porter, 2013. "The Causal Effect of Faculty Unions on Institutional Decision-Making," ILR Review, Cornell University, ILR School, vol. 66(5), pages 1192-1211, October.

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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms

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