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Wages and Employment in Public-Sector Unions

Linda C Babcock, John Engberg and Amihai Glazer

Economic Inquiry, 1997, vol. 35, issue 3, 532-43

Abstract: The authors model the politics of wage and employment determination for unionized public-sector workers who can strike. If the employment level affects the identity of the decisive voter in budget referenda and other elections, then unions may be able to increase wages by increasing employment. The authors identify conditions under which public-sector unionization will lead to increased wages and employment; they also show that a majority of voters may favor unionization. Copyright 1997 by Oxford University Press.

Date: 1997
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