We explore how teachers unions affect education production by comparing outcomes between districts allocating new tax revenue amidst collective bargaining negotiations and districts allocating tax revenue well before. Districts facing union pressure increase teacher salaries and benefits, spend down reserves, and experience no student achievement gains. Conversely, districts facing less pressure hire more teachers (instead of increasing compensation) and realize significant student achievement gains. We interpret these results as causal evidence of the negative impact of teacher rent seeking on education production, as the timing of district tax elections relative to collective bargaining appears to be as good as random.
Governments around the world have privatized public services in the name of efficiency and citizen empowerment, but some argue that privatization could also affect citizen participation in democratic governance. We explore this possibility by estimating the impact of charter schools (which are publicly funded but privately operated) on school district elections. The analysis indicates that the enrollment of district students in charter schools reduced the number of votes cast in district school board contests and, correspondingly, reduced turnout in the odd-year elections in which those contests are held. This impact is concentrated in districts that serve low-achieving, impoverished, and minority students, leading to a modest decline in the share of voters in those districts who are black and who have children. There is little evidence that charter school expansion affected the outcomes of school board elections or turnout in other elections