Table 3

The effects of alternative dispute resolution procedures on public employee wages

Pooled cross sections 1960–2010 Fixed effects
(1) (2) (3) (4)
Panel A. All public employees, relative to mediation
Fact-finding -1.77% -1.43% -2.66% -2.28%
Binding interest arbitration 3.38% 2.54% 4.00% 3.04%
Right to strike 8.57% 5.38% 5.16% 0.94%
State control added Yes Yes Yes Yes
Time control added No Yes No Yes
Observations 1,633,501
Panel B. Public employees covered by a law with a duty to bargain, relative to mediation
Fact-finding -4.29% -2.39% -4.55% -2.46%
Binding interest arbitration 0.06%* -0.35%* 0.76% 0.35%
Right to strike 4.44% 1.56% 4.57% 1.30%
State control added No No Yes Yes
Time control added No Yes No Yes
Observations 1,016,555

*Every figure in the table is statistically significant at the .01 level except for these figures, which are statistically significant at .05

Note: The dependent variable is the log of annual wages. The 1% individual weighted sample is restricted to full-time employees of state and local government who worked for a full year in the year prior to the sample.

Source: Public Use Microdata Sample of the U.S. Census for 1960, 1970, 1980, 1990, and 2000 and American Community Survey for 2010 (Ruggles et al. 2010) and NBER Collective Bargaining Law Data (Valletta and Freeman 1988)

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