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Author:Currie, J.
McConnell, S.
Title:Collective bargaining in the public sector: the effect of legal structure on dispute costs and wages.
Journal:American Economic Review
1991 : SEP, VOL. 81:4, p. 693-718
Index terms:PUBLIC SECTOR
LABOUR LAW
COLLECTIVE BARGAINING
ARBITRATION
WAGE DETERMINATION
Language:eng
Abstract:The impact of collective-bargaining legislation on dispute costs and wages is examined using a panel of Canadian public-sector contracts. The results suggest that policymakers designing collective-bargaining legislation face a trade off between reducing dispute costs and increasing wages. Dispute costs are lower under compulsory arbitration than under the right to strike or when no collective-bargaining legislation exists. Hence, a switch to compulsory arbitration could potentially make both the union and the employer better off by reducing dispute costs. However, it was found that wages are higher under compulsory arbitration than under other legal structures.
SCIMA record nr: 104304
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