scholarly journals Negotiating the Great Recession: How Teacher Collective Bargaining Outcomes Change in Times of Financial Duress

AERA Open ◽  
2019 ◽  
Vol 5 (2) ◽  
pp. 233285841985508 ◽  
Author(s):  
Katharine O. Strunk ◽  
Bradley D. Marianno

This article examines how teacher collective bargaining agreements (CBAs), teacher salaries, and class sizes changed during the Great Recession. Using a district-level data set of California teacher CBAs that includes measures of subarea contract strength and salaries from 2005–2006 and 2011–2012 tied to district-level longitudinal data, we estimate difference-in-difference models to examine bargaining outcomes for districts that should have been more or less fiscally constrained. We find that unions and administrators change critical elements of CBAs and district policy during times of fiscal duress. This includes increasing class sizes, reducing instructional time, and lowering base salaries to relieve financial pressures and negotiating increased protections for teachers in areas with less direct financial implications, including grievance procedures and nonteaching duties.

2021 ◽  
pp. 001041402110474
Author(s):  
Carlos Sanz ◽  
Albert Solé-Ollé ◽  
Pilar Sorribas-Navarro

We investigate whether corruption amplifies the political effects of economic crises. Using Spanish municipal-level data and a difference-in-difference strategy, we find that local unemployment shocks experienced during the Great Recession (2008–2015) increased political fragmentation. This effect was four times larger in municipalities exposed to malfeasance than in municipalities without a history of political corruption. We bolster this evidence by showing that, conditional on province and population strata fixed effects, there is no evidence of differential pre-trends. We also find that the interaction of unemployment and corruption harms the two traditional main parties and benefits especially the new party on the left ( Podemos).


2019 ◽  
Vol 71 (2) ◽  
pp. 367-416 ◽  
Author(s):  
Kanchan Chandra ◽  
Omar García-Ponce

AbstractThis article asks why some Indian districts experience chronic Maoist violence while others do not. The answer helps to explain India’s Maoist civil war, which is the product of the accumulation of violence in a few districts, as well as to generate a new hypothesis about the causes of civil war more generally. The authors argue that, other things equal, the emergence of subaltern-led parties at the critical juncture before armed organizations enter crowds them out: the stronger the presence of subaltern-led political parties in a district at this juncture, the lower the likelihood of experiencing chronic armed violence subsequently. They develop their argument through field research and test its main prediction using an original, district-level data set on subaltern incorporation and Maoist violence in India between 1967 and 2008. The article contributes a new, party-based explanation to the literatures on both civil war and Maoist violence in India. It also introduces new district-level data on the Maoist movement and on the incorporation of subaltern ethnic groups by political parties in India.


2020 ◽  
Vol 240 (4) ◽  
pp. 493-523 ◽  
Author(s):  
Daniel Dietz ◽  
Thomas Zwick

AbstractThis paper analyses the effect of the economic crisis in the years 2008 and 2009 on individual training activities of different employee groups within establishments. We use a unique German linked employer–employee panel data set with detailed information on individual training history (WeLL-ADIAB). The so-called Great Recession can be seen as an exogenous, unexpected, and time-limited shock. Although our results cannot be interpreted in a strictly causal manner, our Diff-in-Diff analyses suggest a direct negative effect of the crisis on individual training activities in 2009 and 2010. The negative effect therefore sets in with a time lag and lasts until after the recession. Furthermore, the recession has a stronger effect for employees in unskilled jobs than for employees in skilled jobs.


Author(s):  
Melisa Bubonya ◽  
Deborah Cobb-Clark ◽  
Daniel Christensen ◽  
Sarah Johnson ◽  
Stephen Zubrick

This paper analyzes the effects of “shocks” to community-level unemployment expectations, induced by the onset of the Great Recession, on children’s mental well-being. The Australian experience of the Great Recession represents a unique case study as despite little change in actual unemployment rates, levels of economic uncertainty grew. This affords us the ability to examine the effects of shocks to economic expectations independent of any actual changes to economic conditions. We draw on and link data from multiple sources, including several waves of the Longitudinal Study of Australian Children (2004–2010), a consumer sentiment survey, and data on local economic conditions. Using our purpose-built data set, we estimate difference-in-differences models to identify plausibly causal effects. We find, for boys, there is no detectable effect of community-level unemployment expectations shocks on mental health. For girls, however, there are modest increases in mental health problems and externalizing behaviors, as measured by the Strengths and Difficulties Questionnaire (SDQ). We additionally find no discernible change in mother’s psychological distress as a result of expectations shocks. These results are stable after controlling for actual labor market conditions.


2015 ◽  
Vol 15 (1) ◽  
Author(s):  
Bruno Albuquerque ◽  
Ursel Baumann ◽  
Georgi Krustev

AbstractThe balance sheet adjustment in the household sector was a prominent feature of the Great Recession that is widely believed to have held back the cyclical recovery of the US economy. A key question for the US outlook is therefore whether household deleveraging has ended or whether further adjustment is needed. The novelty of this paper is to estimate a time-varying equilibrium household debt-to-income ratio determined by economic fundamentals to examine this question. The paper uses state-level data for household debt from the FRBNY Consumer Credit Panel over the period 1999Q1–2012Q4 and employs the Pooled Mean Group (PMG) estimator developed by Pesaran, Shin, and Smith (1999), adjusted for cross-section dependence. The results support the view that, despite significant progress in household balance sheet repair, household deleveraging still had some way to go as of 2012Q4, as the actual debt-to-income-ratio continued to exceed its estimated equilibrium. The baseline conclusions are rather robust to a set of alternative specifications. Going forward, our model suggests that part of this debt gap could, however, be closed by improving economic conditions rather than only by further declines in actual debt. Nevertheless, the normalisation of the monetary policy stance may imply challenges for the deleveraging process by reducing the level of sustainable household debt.


Author(s):  
Lutz Bellmann ◽  
Hans-Dieter Gerner ◽  
Ute Leber

SummaryEven though the 2008/09 economic crisis had only minor employment effects on the German labor market, it might have affected firms’ further training and apprenticeship training behavior. From a theoretical point of view, the impact of the business cycle on firms’ training behaviour is ambiguous. There are reasons for an increase of training during a downturn (e.g., declining opportunity costs of training, fewer exit options for trained workers) as well as arguments for a decrease of training (e.g., uncertain future benefits of training). The existing empirical evidence on the relationship between training and economic downturns is relatively scarce. In particular, we are not aware of any empirical study investigating the effects of the most recent crisis on firms’ training activities in Germany. Our paper aims to fill this gap by using data from the IAB Establishment Panel, a representative German panel data set with annual information about almost 16,000 establishments. In particular, we analyzed the provision and the intensity of further training and apprenticeship training in firms which were affected by the crisis and in those which were not. Our empirical investigation revealed that the establishments, irrespective of whether or not they were hit by the economic crisis, decreased their further training and apprenticeship training efforts in 2009 compared to 2008. However, establishments directly affected by the great recession tended to reduce their training activities more often than those which were not affected. Furthermore, we found much stronger variations in the development of firms’ further training activities than in the development of their apprenticeship training.


2019 ◽  
Vol 7 (2) ◽  
pp. 114-126
Author(s):  
John Sutherland

Purpose The purpose of this paper is to provide a human resource management perspective of the workforce adjustment strategies implemented at workplaces in Britain in response to the Great Recession. Design/methodology/approach The analysis uses an ordered probit and a series of binomial probits to examine a micro data set from the 2011 Workplace Employment Relations Study. Findings Not all workplaces were affected equally by the recession. Not all workplaces chose to implement workforce adjustment strategies consequential of the recession, although the probability of a workplace taking no action decreased the greater the adverse effect of the recession on the workplace. Most workplaces used a combination of workforce adjustment strategies. Workplaces implemented strategies more compatible with labour hoarding than labour shedding, i.e., cutting/freezing wages and halting recruitment to fill vacant posts rather than making employees redundant. Research limitations/implications What was examined was the incidence of the workforce adjustment strategies, not the number of employees affected by the implementation of a strategy. Further, what was examined were outcomes. What is not known are the processes by which these outcomes were arrived at. Originality/value This paper concurs with the findings of previous economic studies that workplaces hoarded labour, cut hours and lowered pay. In so doing, however, it provides a more detailed and more informed human resource management perspective of these adjustment strategies.


2021 ◽  
Vol 2 (3) ◽  
pp. 149-169
Author(s):  
Daniel Pérez del Prado

Decentralisation of collective bargaining has been one of the key trends concerning labour market regulation of the last decades. Most of European countries have developed – with different breath and scope – procedures and reforms to strengthen the company level of bargaining. The Great Recession has stressed this orientation, particularly in those countries which were under financial pressure. This paper focuses on the cases of four Mediterranean countries – France, Italy, Spain, and Portugal – in order to assess how decentralisation has been carried out and, most importantly, what kind of practical results have been achieved. On the base of these outcomes, it highlights how the debate concerning the structure ofcollective bargaining is changing from a black or white perspective to a new one in which mixed models are possible if the whole system is coordinated, taking into consideration the type of collective bargaining model set in the country.  


Sign in / Sign up

Export Citation Format

Share Document