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Project Citation: 

Matsusaka, John G. Replication data for: Direct Democracy and Public Employees. Nashville, TN: American Economic Association [publisher], 2009. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113350V1

Project Description

Summary:  View help for Summary In the public sector, employment may be inefficiently high because of patronage, and wages may be inefficiently high because of public employee interest groups. This paper explores whether the initiative process, a direct democracy institution of growing importance, ameliorates these political economy problems. In a sample of 650+ cities, I find that when public employees cannot bargain collectively and patronage could be a problem, initiatives appear to cut employment but not wages. When public employees bargain collectively, driving up wages, the initiative appears to cut wages but not employment. The employment-cutting result is robust; the wage-cutting result survives some but not all robustness tests. (JEL D72, J31, J45, J52)

Scope of Project

Subject Terms:  View help for Subject Terms Census data; Legal provisions
JEL Classification:  View help for JEL Classification
      D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
      J31 Wage Level and Structure; Wage Differentials
      J45 Public Sector Labor Markets
      J52 Dispute Resolution: Strikes, Arbitration, and Mediation; Collective Bargaining
Geographic Coverage:  View help for Geographic Coverage United States
Time Period(s):  View help for Time Period(s) 2006 – 2006
Data Type(s):  View help for Data Type(s) census/enumeration data; other:

Methodology

Data Source:  View help for Data Source U.S. Census; city charters; NBER
Unit(s) of Observation:  View help for Unit(s) of Observation Cities,

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