Person:

Han, Eunice

Chapter 1 begins with the motivation of my study in teachers' labor market. I employ a monopolistic screening model to show that there exist multiple equilibria in the educational system; a pooling equilibrium and a separating equilibrium. The model predicts that the pooling equilibrium is optimal only when the average quality of teacher applicants is high. Using data from the OECD, I examine the relation between teachers' earnings and teacher quality of the U.S. and Korea. Chapter 2 focuses on teachers and their career dynamics, and the data is at teacher level. Using the Current Population Survey for 2001-2010, I show that public school teachers are paid less compared to other comparable college graduates in non-teaching sectors. By studying the change in earnings after career changes, I find the evidence of positive selection when teachers move into the non-teaching sectors and of negative selection when non-teachers move into the teaching sector, which results in the decrease in the average teacher quality. Chapter 3 looks at both teachers and school districts, and I use district-teacher matched dataset, based on the School and Staffing Survey (SASS) for 2007-2008. I employ a multilevel model and a propensity score matching to identify union effects in states with different legal environments for collective bargaining of teachers. I find that collective bargaining is neither necessary nor sufficient for unions to affect teachers' well-being. I show that meet-and-confer is a popular alternative to collective bargaining and that it is an important mechanism for unions to influence teachers' non-wage benefits. Chapter 4 concerns school districts, and I use SASS district level data. I reevaluate the role of teachers unions on pay structure and districts' financial status. In contrasts to previous findings, I find that the variance of teachers' earnings is higher in more unionized settings. Moreover, I show that the financial status of districts with teachers unions is stronger than that of districts without the unions. I confirm that unionism is associated with less usage of performance pay system.

This paper examines unionism’s relationship to the size of the middle class and its relationship to intergenerational mobility. Panel Study of Income Dynamics (PSID) 1985 and 2011 files are used to examine the change in the share of workers in a middle-income group (defined by persons having incomes within 50 percent of the median) and use a shift-share decomposition to explore how the decline of unionism contributes to the shrinking middle class. The files are also used to investigate the correlation between parents’ union status and the incomes of their children. Additionally, federal income tax data is used to examine the geographical correlation between union density and intergenerational mobility. Findings include that union workers are disproportionately in the middle-income group or above, and some reach middle-income status due to the union wage premium; the offspring of union parents have higher incomes than the offspring of otherwise comparable non-union parents, especially when the parents are low-skilled; and offspring from communities with higher union density have higher average incomes relative to their parents compared to offspring from communities with lower union density. These findings show a strong, though not necessarily causal, link between unions, the middle class, and intergenerational mobility.