UNION EFFECTS ON EARNINGS DISPERSION IN AUSTRALIA, 1986-1994

In Australia a large decline in union density has occurred since the m id-1970s. This paper examines the effect of the decline in union densi ty on the dispersion of earnings in Australia between 1986 and 1994. C hanges in union density are found to have increased earnings dispersio n for male employees over this period, but do not appear to have had a strong effect on earnings dispersion for female employees. The main c ause of changes in earnings dispersion for both male and female employ ees has been an increase in the dispersion of earnings of non-union em ployees.