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Mar 16

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Is There Really A Relationship Between Public Union Contracts And States’ Fiscal Messes?

The recent political standoff in Wisconsin over the collective bargaining rights and benefits of public union employees received significant national attention and will likely be repeated in other states. Some newly-elected governors, such as Governor Walker of Wisconsin and Governor Kasich of Ohio, are attempting to balance their budgets in part by altering public unions’ rights and benefits. They claim that current public employee union contracts are a large contributor to the states’ fiscal crises. Is this really true?

The statistics discussed in this article demonstrate the following:

  1. Contrary to the general notion that states in the biggest fiscal messes are related to non Right to Work states, both the Fisher Exact and the Chi-square test support the contention (or hypothesis) that the largest fiscal messes are NOT related to whether or not a state is a Right to Work state, at the 95% confidence level. Put simply, one can successfully assert with 95 percent confidence, that there is no relationship between those states in the biggest fiscal messes and whether a state is a Right to Work state.
  2. In contrast to the statistical results testing the first hypothesis above, both the Fisher Exact and the Chi-square tests support the contention (or hypothesis) that a states’ political tendency (i.e., whether it is a blue, red or purple (battleground) state) is related to whether or not a state is a Right to Work state, at the 95% confidence level. Put simply, one can successfully assert with 95 percent confidence, that there is in fact a relationship between states’ political tendency and whether or not a state is a Right to Work state.

You can perform the Chi-square test  using this online calculator.

About the author

Nicole Liska

I am a Principal at Fulcrum Inquiry, an accounting and economic consulting firm that performs damage analysis for commercial litigation, forensic accountings, financial investigations, and business valuations. I hold an ABD and MA in economics from the University of California, San Diego. I perform damages analyses and serve as a damages expert witness. My resume is on Fulcrum's website.

Permanent link to this article: http://betweenthenumbers.net/2011/03/is-there-really-a-relationship-between-public-union-contracts-and-states%e2%80%99-fiscal-messes/

2 comments

  1. personal injury attorney

    Thanks for that awesome posting. It saved MUCH time 🙂

  2. whiplash compensation

    It is good to know about this contracts. But union employees would also be considered, they work for the company and the company should be thankful for that. Thanks for this article. I appreciate your writing.

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