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Unions without rents: the curious economics of faculty unions

Author

Listed:
  • Arthur 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.

Suggested Citation

  • Arthur Hosios & Aloysius Siow, 2004. "Unions without rents: the curious economics of faculty unions," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 28-52, February.
    • Handle: RePEc:cje:issued:v:37:y:2004:i:1:p:28-52
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    References listed on IDEAS

    as
    1. Grossman, Gene M, 1983. "Union Wages, Temporary Layoffs, and Seniority," American Economic Review, American Economic Association, vol. 73(3), pages 277-290, June.
    2. Douglas H. Blair & David L. Crawford, 1984. "Labor Union Objectives and Collective Bargaining," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(3), pages 547-566.
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    5. James Monks, 2000. "Unionization and Faculty Salaries: New Evidence from the 1990s," Journal of Labor Research, Transaction Publishers, vol. 21(2), pages 305-314, April.
    6. Card, David, 1996. "The Effect of Unions on the Structure of Wages: A Longitudinal Analysis," Econometrica, Econometric Society, vol. 64(4), pages 957-979, July.
    7. Jacob Mincer, 1981. "Union Effects: Wages, Turnover, and Job Training," NBER Working Papers 0808, National Bureau of Economic Research, Inc.
    8. Robinson, Chris, 1989. "The Joint Determination of Union Status and Union Wage Effects: Some Tests of Alternative Models," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 639-667, June.
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    Cited by:

    1. James B. Davies & Martin G. Kocher & Matthias Sutter, 2008. "Economics research in Canada: a long-run assessment of journal publications," Canadian Journal of Economics, Canadian Economics Association, vol. 41(1), pages 22-45, February.
    2. 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.
    3. 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.
    4. 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.
    5. Schenk, Tom, Jr., 2007. "The effects of graduate-student unionization," ISU General Staff Papers 2007010108000015881, Iowa State University, Department of Economics.
    6. 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.
    7. 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.
    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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