Abstract
This paper examines how public employee unions influence the allocation of public sector jobs. The empirical results indicate that vote maximizing public officials’ employment decisions are influenced by the political clout of highly-unionized employees. The political clout of public-sector unions influences the functional distribution of public-sector jobs by increasing demand for the relatively more organized functions. These results suggest that consideration should be given to the growth of public sector collective bargaining in the allocation of public sector resources.
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