Symphony Musicians and Symphony Orchestras

46 Pages Posted: 27 Mar 2008

See all articles by Robert J. Flanagan

Robert J. Flanagan

Stanford Graduate School of Business

Date Written: January 2008

Abstract

This paper investigates the extent to which the economic challenges faced by symphony orchestras in the United States reflect collectively bargained wage increases and work rules. Since the late 1960s, collective bargaining agreements have transformed the artistic expenses of orchestras from variable to fixed costs by providing both wage and employment guarantees. The resulting agreements limit the ability of orchestras to adjust labor costs in the face of financial challenges, and the paper presents econometric evidence indicating that musicians' wages are not significantly correlated with measures of their orchestra's financial balance. The paper discusses features of the nonprofit governance of symphony orchestras which reduces the bargaining resistance of orchestras to wage and employment security proposals.

Keywords: economics of organizations

Suggested Citation

Flanagan, Robert J., Symphony Musicians and Symphony Orchestras (January 2008). Stanford University Graduate School of Business Research Paper No. 1989, Available at SSRN: https://ssrn.com/abstract=1111772 or http://dx.doi.org/10.2139/ssrn.1111772

Robert J. Flanagan (Contact Author)

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

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