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The Effects of Union Membership on Wages and Employee Benefits: The Case of Australia

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  • Robert Kornfeld

Abstract

In Australia, pay awards by government tribunals cover nearly the entire work force, and those awards set equal pay for comparable union and nonunion workers. Union members may, however, secure higher compensation through plant-level bargaining. This study uses 1984–88 panel data to estimate the magnitude of union effects on compensation by examining changes in the compensation of employees who enter and leave union jobs, relative to changes in the compensation of workers who remain union or nonunion. The results show that union workers in Australia enjoy 7–18% higher wages than comparable nonunion workers and are also more likely to have access to a pension plan.

Suggested Citation

  • Robert Kornfeld, 1993. "The Effects of Union Membership on Wages and Employee Benefits: The Case of Australia," ILR Review, Cornell University, ILR School, vol. 47(1), pages 114-128, October.
    • Handle: RePEc:sae:ilrrev:v:47:y:1993:i:1:p:114-128
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    Cited by:

    1. Lu, Yi & Tao, Zhigang & Wang, Yijiang, 2010. "Union effects on performance and employment relations: Evidence from China," China Economic Review, Elsevier, vol. 21(1), pages 202-210, March.
    2. James Bishop & Iris Chan, 2019. "Is Declining Union Membership Contributing to Low Wages Growth?," RBA Annual Conference Papers acp2019-06, Reserve Bank of Australia.
    3. Tingting Zhang, 2019. "Effects of Occupational Licensing and Unions on Labour Market Earnings in Canada," British Journal of Industrial Relations, London School of Economics, vol. 57(4), pages 791-817, December.
    4. John Pencavel, 1997. "Regulating Collective Bargaining in Developing Countries: Lessons from Three Developed Countries," Working Papers 97025, Stanford University, Department of Economics.
    5. Héctor Gutiérrez Rufrancos, 2019. "Are There Gains to Joining a Union? Evidence from Mexico," British Journal of Industrial Relations, London School of Economics, vol. 57(3), pages 676-712, September.

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