Consequences of Wisconsin's Act 10: Teacher Compensation and Employment

38 Pages Posted: 17 May 2017 Last revised: 17 Jun 2017

Rebecca Jorgensen

Federal Reserve Board of Governors

Charles C. Moul

Miami University of Ohio - Department of Economics

Date Written: June 16, 2017

Abstract

Wisconsin’s Act 10 in 2011 effectively eliminated collective bargaining rights for public school teachers and mandated benefits cuts for most districts. Its impacts, however, remain largely unexplored. We use difference-in-differences methods on Midwestern school-district data from 2002-14 to examine the act’s net impact on compensation and employment. Besides confirming the statutory provisions that immediately cut district contributions to pension and health benefits, we find that Act 10 coincided with significant declines in benefits that went beyond the statutory language. We find no such Wisconsin-specific impacts for salary, which declined throughout the region after 2011. Of most note, controlling for funding level and composition reveals that Wisconsin school districts, unlike those in the control states, have seen the number of teachers per student rise in the years since Act 10.

Keywords: Educational Finance, Collective Bargaining, Public Policy

JEL Classification: H75, J58, I22

Suggested Citation

Jorgensen, Rebecca and Moul, Charles C., Consequences of Wisconsin's Act 10: Teacher Compensation and Employment (June 16, 2017). Available at SSRN: https://ssrn.com/abstract=2969077 or http://dx.doi.org/10.2139/ssrn.2969077

Rebecca Jorgensen

Federal Reserve Board of Governors ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Charles C. Moul (Contact Author)

Miami University of Ohio - Department of Economics ( email )

Farmer School of Business
Oxford, OH 45056
United States

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