Selective Benefits of Teaching

As discussed in class, Olson's theory of collective action predicts that small groups will be the most effective at accomplishing their goals as they are the most capable of overcoming free-rider problems.  However, we observe many large groups that are able to provide (or over-provide) their lobbying services.  One such group is a teachers union.  As outlined in this article about Chicago unions, teachers unions actually seek to protect individual teachers from being fired - even in several cases where teachers are underperforming or threatening student safety.  Why would unions, which ought to be expending resources to raise wages or improve hours, expend resources protecting bad teachers?

The answer lies with selective benefits.  In order to incentivize teachers to join the union and not merely free-ride off of legislation favorable to teachers (indiscriminate benefits), unions also provide selective benefits, such as heightened job security, to union members.  Thus, teachers contribute dues to the union in order to gain the individual benefit of a protected career, and the union is able to use the revenue to lobby for collective benefits as well.

So long economics department - I'm transferring to the Curry School!