Previous research and conventional wisdom suggest that the practice of collective bargaining, the availability of interest arbitration, and the use of arbitration when available all have a positive effect on salaries. In this study, believed to be the first to incorporate all those variables, the authors analyze data on police salaries in more than 900 cities during the 1971–81 period. The results show that collective bargaining and the availability of arbitration do have positive although modest effects on salaries, but in states providing the arbitration option, salaries do not differ significantly between cities that use the option and those that do not.
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