NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Public Sector Bargaining and the Local Budgetary Process

Joseph Gyourko, Joseph Tracy

NBER Working Paper No. 2915
Issued in March 1989
NBER Program(s):   LS

This paper investigates how the fiscal environment and the budgetary process affect wage and employment determination in the local public sector. The structure of the local tax system is found to be influential with significantly higher wages occurring in cities with access to local sales and/or income taxes. State-imposed property tax limits are found to be associated with lower wages (but not overall payrolls per capita). We find evidence that skill enhancement may be an important policy tool. Local governments appear to successfully use it to mitigate the wage premia associated with strong state collective bargaining legislation. We also find that controlling for the human capital of teachers substantially reduces the well-known positive correlation between teacher wages and community income.

download in pdf format
   (339 K)

download in djvu format
   (265 K)

email paper

This paper is available as PDF (339 K) or DjVu (265 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w2915

Published: Research in Labor Economics, Vol. 12, 1991, pp. 117-136

Users who downloaded this paper also downloaded these:
Farber The Evolution of Public Sector Bargaining Laws
Ehrenberg and Schwarz w1179 Public Sector Labor Markets
Freeman w1452 Unionism Comes to the Public Sector
Gyourko and Tracy w2040 The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us