Unionization follows strongly divergent patterns among OECD countries
in the postwar period. I propose business cycle, demographic, and poli
tical arguments to explain varying unionization over time. Centralized
union movements that engage in corporatist bargaining and union disbu
rsement of unemployment benefits suggest explanations of cross-nationa
l variability in unionization. Analysis of annual data for 18 OECD cou
ntries from 1950 to 1985 indicates strong positive effects of union ce
ntralization and union disbursement of unemployment benefits on unioni
zation. Union centralization also shapes the longitudinal effect of st
rike activity on unionization while union disbursement of unemployment
benefits positively influences longitudinal effects of unemployment a
nd employment growth. Results suggest that labor movements flourish wh
en they establish an institutional control over labor market outcomes
beyond wage bargaining. When labor's institutional control is weak, wo
rker militancy may encourage working class organization in trade union
s.