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The Determinants of Australian Trade Union Membership

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  • Borland, Jeff
  • Ouliaris, S

Abstract

This paper investigates the determinants of trade union membership in Australia using the Engle and Granger (1987) theory of co-integrated economic variables. Applying the theory of co-integration yields a model of union membership which can be interpreted as distinguishing between long-run and "business cycle" determinants of union membership. The principal long-run determinant of union membership is found to be the level of employment disaggregated by industry classification. Business cycle variables--the real wage and the change in unemployment--are also shown to influence movements in union density. These findings are consistent with recent studies which have attributed the decline in union membership in Australia since the early 1980s to the changing composition of employment and movements in the rate of unemployment. Copyright 1994 by John Wiley & Sons, Ltd.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 9 (1994)
Issue (Month): 4 (Oct.-Dec.)
Pages: 453-68

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Handle: RePEc:jae:japmet:v:9:y:1994:i:4:p:453-68

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Cited by:
  1. Blanchflower, David G., 2006. "A Cross-Country Study of Union Membership," IZA Discussion Papers 2016, Institute for the Study of Labor (IZA).
  2. Schnabel, Claus, 2012. "Union Membership and Density: Some (Not So) Stylized Facts and Challenges," IZA Discussion Papers 6792, Institute for the Study of Labor (IZA).
  3. Jeff Borland, 1994. "Union Effects and Earnings Dispersion in Australia, 1986-1994," Canadian International Labour Network Working Papers 04, McMaster University.
  4. Schnabel, Claus, 2002. "Determinants of trade union membership," Discussion Papers 15, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  5. Haile, Getinet Astatike, 2012. "Union Decline in Britain: Is Chauvinism Also to Blame?," IZA Discussion Papers 6536, Institute for the Study of Labor (IZA).

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