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What evidence is available to assess the concrete effects of teacher unions on public schools and to provide a basis for the most reliable conclusions? Other reviews of teacher unions often ask related but different questions that emphasize the institutional context, evolution, and operation of collective bargaining in public schools. Two prominent examples of this genre are Teacher Unions in Schools (Johnson, 1984) and The Changing Idea of a Teachers’ Union (Kerchner & Mitchell, 1988). Other contributions to the present volume offer related perspectives.

Randall W. Eberts, Ph.D., is the executive director of the W. E. Upjohn Institute for Employment Research, Kalamazoo, Michigan.Mary Hatwood Futrell, Ed.D., is president of Education International (EI), headquartered in Brussels, Belgium, and dean of the Graduate School of Education and Human Development at George Washington University, Washington, DC.Bob Harris, M.A., Dip.T (Sec.), (Australia), advanced study at the Institut Universitaire des Hautes Etudes Internationales, Geneva, is a former EI executive director and current senior consultant based in Nyon, Switzerland.Ronald D. Henderson, Ph.D., is the director of the Research Department at the National Education Association, Washington, DC.Rachel Hendrickson, Ph.D., is the higher education coordinator in the Membership and Organizing Department at the National Education Association, Washington, DC.Kevin Hollenbeck, Ph.D., is a senior economist and director of publications at the W. E. Upjohn Institute for Employment Research, Kalamazoo, Michigan.Susan Moore Johnson, Ed.D., is Carl H. Pforzheimer, Jr., Professor of Teaching and Learning at the Harvard University Graduate School of Education, Cambridge, Massachusetts.Charles T. Kerchner, Ph.D., is Hollis P. Allen Professor of Education at the Claremont Graduate University, Claremont, California.Julia E. Koppich, Ph.D., is president of Koppich & Associates, an education policy research and consulting firm, in San Francisco, California.Carrie M. Lewis, J.D., is a senior writer-editor in the Government Relations Department at the National Education Association, Washington, DC.Christine Maitland, Ph.D., is a former higher education coordinator for the National Education Association who now works on higher education issues with the NEA’s Pacific Regional Office in Burlingame, California.Christine E. Murray, Ph.D., is a professor in the Department of Education and Human Development and dean of the School of Professions, State University of New York College at Brockport.Diane Shust, J.D., M.S.Ed., is the director of the Government Relations Department at the National Education Association, Washington, DC.Joe A. Stone, Ph.D., is W. E. Miner Professor of Economics at the University of Oregon, Eugene.Wayne J. Urban, Ph.D., is Regents’ Professor of Education in the Department of Educational Policy Studies at Georgia State University, Atlanta.Fred van Leeuwen is the general secretary of Education International, Brussels, Belgium.Maris A. Vinovskis, Ph.D., is Bentley Professor of History, senior research scientist at the Institute for Social Research, and faculty member of the Gerald R. Ford School of Public Policy at the University of Michigan, Ann Arbor.Paul Wolman, Ph.D., is a senior policy analyst in the Research Department at the National Education Association, Washington, DC.

The public has long been led to believe that the connection between teacher unions and quality education is negligible or even a contradiction in terms. For an example of that view, one barely needs to go beyond the title of a 1996 U.S. News & World Report cover story, “Why Teachers Don’t Teach.” The story essentially tells the public that the teacher unions bear most of the blame, that they have used their money and muscle to preserve their own privileges and to stave off efforts at reforms aimed at improving educational quality. The two major teacher unions, the American Federation of Teachers (AFT) and the National Education Association (NEA), are the main targets of this criticism.

This paper evaluates the commonly used CPI and WPI proxies for the real exchange rate by comparing them to new measures constructed from a different data series of traded and nontraded goods prices. The tests provide mixed evidence in favor of using the general price indexes to construct measures of the real exchange rate.