A sample of Michigan cities is the basis for an evaluation of the economic benefits of collective bargaining to teachers and the economic impact of bargaining upon the school districts that employ and negotiate with them. The study's conclusions include: (1) Bargaining produced pay increases averaging 10 to 20 percent higher than teachers would otherwise have received, (2) the average annual increase in salaries for inexperienced teachers was three times as large after bargaining as it was before, (3) collective bargaining tended to make salary rates uniform among the school districts studied, (4) teachers have not yet received significant concessions in the bargaining issue of class size, (5) increases in teacher salaries resulting from bargaining have substantially increased the size of operating budgets per pupil, but not at the expense of other budget elements, and (6) bargaining-induced increases in teacher compensation were paid for largely by minor economies and from new revenues. (TT)