Aspects of Wage Determination in Local Government Employment

Abstract

In recent years, state and local governments in the United States have experienced rapid growth of employment, substantial increases in the unionization of their work forces, and, concomitantly, expanded use of collective bargaining in the making of decisions concerning employment relationships. These developments, together with the worsening financial plight of many governments, have sparked renewed interest in public decisions and the processes by which such decisions are reached.' Since received theory, which rests on assumptions and some empirical evidence about the private sector,2 seems inapplicable to public employment, the question of governmental determination remains largely unanswered. This article seeks to illuminate the process of public determination through examination of the wage principle in local government employment. First, conceptual underpinnings of the prevailing rule currently operative at many levels of government are presented. Next, the implementation of this principle is reviewed by analyzing muncipal structures and the relationship between public and private