THE EFFECTS OF UNION MEMBERSHIP ON WAGES AND EMPLOYEE BENEFITS - THE CASE OF AUSTRALIA

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