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IZA Discussion Paper No. 17836
April 2025
The Political Consequences of Controversial Education Reform: Lessons from Wisconsin’s Act 10

Public service reforms often provoke political backlash. Can they also yield political benefits for the politicians who champion them? We study a Wisconsin law that weakened teachers' unions and liberalized pay, prompting mass protests. Exploiting its staggered implementation across school districts, we find that the reform cut union revenues, raised student test scores, and increased pay for some teachers. Exposure to the law increased the incumbent governor's vote share by about 20% of his margin of victory and reduced campaign contributions to his opponent. Gains were larger in districts with stronger unions ex ante and in those where more voters benefited from the reform. Our findings highlight how even politically risky reforms can generate electoral benefits under the right circumstances.

Kommunikation
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Netzwerkkoordination
Christina Gathmann
christina.gathmann@liser.lu

Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

Über das IZA@LISER Network
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