Archives for unions



Losing Experienced Teachers Is Bad for Schools, Right?

Maybe not. A new working paper (abstract; PDF) by Maria Fitzpatrick and Michael Lovenheim finds that offering early retirement to experienced schoolteachers doesn’t have a negative effect on students’ test scores, and in some cases leads to an improvement. The abstract:

Early retirement incentives (ERIs) are increasingly prevalent in education as districts seek to close budget gaps by replacing expensive experienced teachers with lower-cost newer teachers. Combined with the aging of the teacher workforce, these ERIs are likely to change the composition of teachers dramatically in the coming years.  We use exogenous variation from an ERI program in Illinois in the mid-1990s to provide the first evidence in the literature of the effects of large-scale teacher retirements on student achievement.  We find the program did not reduce test scores; likely, it increased them, with positive effects most pronounced in lower-SES schools.

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The Man Who Changed Professional Sports

Marvin Miller passed away last week.  When this happened I immediately began work on a post detailing the important impact Miller’s work — as the first leader of the Major League Baseball Players Association — had on sports.  And then I noticed that many other people had the same idea (see Jayson Stark, Jon Wertheim, Lester Munson, and Richard Justice – among many others).  Given all the wonderful writing on Miller’s life and career, I decided to focus on how Miller impacted our understanding of both sports and economics. 

Such a post… well, I could write more than a few thousand words on just that topic.   Since few people want to read that many words at a blog, I am going to focus on Miller’s work to end baseball’s reserve clause (and what that has meant for baseball, sports, and economics).

Our story begins back in the 19th century. As noted in a wonderful article by E. Woodrow Eckard in the Journal of Sports Economics, the National League began in 1876 with a labor market quite similar to the markets we tend to observe outside of sports.  Read More »



NBA Players’ Union Decertification As Owner Opportunity: What if Mark Cuban Had Gone Maverick?

David Stern ran roughshod over owners during the recent NBA lockout negotiations. He was willing to levy stiff fines for any public comments that might undermine an image of management unity.

But the league’s power to control dissident owners possibly changed on Nov. 14, when the union representing NBA players formally dissolved. The league treated dissolution as a bad faith bargaining ploy by the players to gain bargaining power. You see, sports leagues can engage in collusive conduct that would otherwise violate the Sherman Antitrust Act – so long as the collusion takes place as part of a collective bargaining agreement. By disbanding the union, the players were threatening to expose the league to massive antitrust liability.

The league treated the players’ dissolution as though it had no impact on its control of team behavior. But imagine for a moment that one of the team owners took the players decertification seriously. Read More »



The Economic Battlefield of the NBA Lockout

The following is a guest post by David Berri, a Professor of Economics at Southern Utah University. He is also the lead author of Stumbling on Wins, the general manager of the sports-economics blog Wages of Wins, and is a frequent contributor to the Freakonomics blog.

With the NBA away, sports fans are looking for something to satisfy their need to watch teams strive for victory. Well, why not take a look at the teams competing in the lockout? Okay, maybe this is a contest only a sports economist could love. But while it may not appeal to everyone, the labor dispute is still best thought of as a contest between two teams.

The first team is the NBA owners. The owners are the dominant buyer in the world market for elite basketball talent, so they have substantial monopsony power. In the other corner are the players, who are currently trying to disband their union. This union gave the players monopoly power in the sale of elite basketball talent (more specifically, in helping to determine the conditions under which individual players would sell their services). When a monopsony meets a monopoly on the economic battlefield, the outcome is determined by bargaining. Read More »