The Effect of Unionization on Faculty Salaries 1978-1996: A Test of Empirical Methods

Mary Ellen Benedict

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DOI: 10.2190/CN.31.3.e

Abstract

This article analyzes the union/nonunion differential for faculty compensation. Using a unique data set that includes information on public academic institutions over two time periods, the analysis examines whether the union premium changed over time. Various model specifications proposed by previous researchers are also tested. The estimated outcomes suggest: a) that the union/nonunion differential increased substantially in the 1990s compared to the late 1970s and early 1980s. Estimates suggest that unionized faculty experienced a 5 percent advantage in the 1970s-80s, and a 13 percent advantage in the 1990s; b) the model specification is somewhat sensitive to controls for heterogeneity and endogeneity, but less so for the unobserved individual effect typical with panel data. The growth in the union premium may be important as the legal structure underlying faculty unionization becomes more inclusive for private institutions and part-time faculty.

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