COLLECTIVE-BARGAINING AND THE DETERMINANTS OF TEACHERS SALARIES

Using a national sample of public high schools, we find that bargainin g spillovers play an important role in teachers' labor markets. The sp illover variable consistently indicates a larger bargaining effect tha n does the collective bargaining coverage dummy. We estimate that a 10 percent increase in the state density of teachers' unions increases t he highest teacher salaries by 2.6 percent and the lowest by 0.2 perce nt. Consistent with prior research, teacher union density was mast str ongly associated with highest salaries and had a nonsignificant positi ve association with lowest salaries. Teachers' unions also affect the structural determinants of teachers' salaries, offering some additiona l evidence supporting a median voter model. The proportion of unionize d teachers with higher levels of education and experience (i.e., the h ighest paid) is positively related to highest salaries. Finally, our r esults confirm the importance of demand factors in teacher wage determ ination.