NBER Program(s):Economics of Education, Labor Studies, Public Economics
Teacher collective bargaining is a highly debated feature of the education system in the US. This paper presents the first analysis of the effect of teacher collective bargaining laws on long-run labor market and educational attainment outcomes, exploiting the timing of passage of duty-tobargain laws across cohorts within states and across states over time. Using American Community Survey data linked to each respondent’s state of birth, we examine labor market outcomes and educational attainment for 35-49 year olds, separately by gender. We find robust evidence that exposure to teacher collective bargaining laws worsens the future labor market outcomes of men: in the first 10 years after passage of a duty-to-bargain law, male earnings decline by $2,134 (or 3.93%) per year and hours worked decrease by 0.42 hours per week. The earnings estimates for men indicate that teacher collective bargaining reduces earnings by $213.8 billion in the US annually. We also find evidence of lower male employment rates, which is driven by lower labor force participation. Exposure to collective bargaining laws leads to reductions in the skill levels of...
(Excerpt) Read more at: NBER
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