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Title: Measuring the Effect of Arbitration on Wage Levels: The Case of Police Officers
Authors: Hyslop, Dean
Ashenfelter, Orley
Keywords: empirical evaluation
arbitration statute
wage levels
police officers
Issue Date: 1-Jul-1999
Citation: Industrial and Labor Relations Review, vol.54, no. 2, forthcoming January 2001
Series/Report no.: Working Papers (Princeton University. Industrial Relations Section) ; 421
Abstract: In this paper we provide an empirical evaluation of the effect that the provision of an arbitration statute has on the wage levels of police officers. We analyze the effect of arbitration on wages by comparing wage levels across political jurisdictions and over time using a sample of states. Two complementary data sources are used: panel data on state level wages of police officers, and individual level data on police officers from Decennial Censuses. The empirical results from both data sets are remarkably consistent and provide no robust evidence that the presence of arbitration statutes has a consistent effect on overall wage levels. On average, the effect of arbitration is approximately zero, although there is substantial heterogeneity in the estimated effects across states.
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