Teacher Unions, Teacher Pay and Student Performance in India: A Pupil Fixed Effects Approach

This paper examines the relationship between teacher unionization, student achievement and teachers’ pay using a cross-section of data from private schools in India. We use differences in student mark across subjects to identify within-pupil variation in achievement and find that union membership of the teacher appears to strongly reduce pupil achievement. We find no evidence this could be due to the unobservables not controlled for by this procedure. A school fixed effects equation of teacher pay shows that union membership substantially raises pay and in this case too we find that remaining unobservables are unlikely to explain this outcome. We thus have in this data clear evidence that unions raise cost and reduce student achievement.