This paper presents a theoretical and empirical evaluation of the impact of teacher bargaining on the demand for school inputs, the compensation of school personnel, and the level of educational expenditure in public school districts. It is demonstrated that the major impact of bargaining for teachers has been on a regional, rather than on a district by district, level, and, contrary to the results of previous studies, bargaining does appear to have a substantial and significant effect on teachers' salaries. The empirical analysis is carried out on a sample of Public school districts located in the state of California. (Author)