The Long Haul Effects of Interest Arbitration: The Case of New York State's Taylor Law

Posted: 15 Nov 2010

See all articles by Thomas A. Kochan

Thomas A. Kochan

Massachusetts Institute of Technology (MIT) - Sloan School of Management

David B. Lipsky

Cornell University - School of Industrial and Labor Relations

Mary Newhart

Cornell Law School

Alan Benson

affiliation not provided to SSRN

Date Written: July 1, 2010

Abstract

The authors examine debates about the effects of mandatory interest arbitration on police and firefighters in New York State under the Taylor Law from 1974 to 2007. Comparing experience with interest arbitration in the first three years after the law was adopted with experiences from 1995 to 2007, the authors find that no strikes occurred under arbitration and that rates of dependence on arbitration declined considerably. Moreover, the effectiveness of mediation prior to and during arbitration remained high, the tripartite arbitration structure continued to foster discussion of options for resolution among arbitration panel members, and wage increases awarded under arbitration matched those negotiated voluntarily by the parties. Econometric estimates of the effects of interest arbitration on wage changes in a national sample suggest wage increases differed little in states with arbitration from those without it. The authors therefore propose a role for interest arbitration in national labor policy.

Keywords: Labor Law, Arbitration, Collective Bargaining, Public Sector

JEL Classification: K31, J52

Suggested Citation

Kochan, Thomas A. and Lipsky, David B. and Newhart, Mary and Benson, Alan, The Long Haul Effects of Interest Arbitration: The Case of New York State's Taylor Law (July 1, 2010). Industrial and Labor Relations Review, Vol. 63, No. 4, 2010. Available at SSRN: https://ssrn.com/abstract=1709466

Thomas A. Kochan (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

E52-583
Cambridge, MA 02142
United States
617-253-6689 (Phone)
617-253-7696 (Fax)

David B. Lipsky

Cornell University - School of Industrial and Labor Relations ( email )

Ithaca, NY 14853-3901
United States

Mary Newhart

Cornell Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

Alan Benson

affiliation not provided to SSRN ( email )

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