Union Effects and Earnings Dispersion in Australia, 1986-1994
In Australia, a large decline in union density has occurred since the mid-1970's. This paper examines the relation between the decline in union density and the dispersion of earnings in Australia between 1986 and 1994. Changes in union density are found to be associated with an increase in earnings dispersion for male employees over this period, but do not appear to be strongly related to changes in earnings dispersion for female employees. The main cause of changes in earnings dispersion for both male and female employees has been an increase in the dispersion of earnings of nonunion employees.
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