Wages, Nonwage Compensation, and Municipal Unions



This study demonstrates that union power in municipal labor markets depends upon the form of unionization within each municipal department and on municipal bargaining policies, holding constant the legal environment. Bargaining units achieve larger increases in total compensation than unrecognized organizations, which are themselves stronger than unorganized departments. Compensation levels for unorganized and organized departments are higher in cities that bargain with other departments than in cities which do not bargain. Union wage effects understate total compensation effects regardless of the degree of unionization