The literature on how unionization affects faculty salaries and compensatio
n is inconclusive. I use the 1993 National Survey of Postsecondary Faculty
to investigate how collective bargaining affects faculty salaries. Union re
presentation significantly alters the returns to individual and institution
al characteristics, and unionized faculty receive a premium of between 7 an
d 14 percent, an earnings differential that is substantially larger than th
ose found in most earlier studies.