This study adds to the small empirical literature on the impact unions have
on employment growth using data from Australia. Unlike previous studies, t
he data used are from a panel of firms surveyed at two points in time rathe
r than a single cross section. The results indicate a negative union effect
on employment in private-sector firms of about 2.5 percent per annum that,
despite the very different institutional framework that prevails in Austra
lia, is consistent with results obtained with North American data.