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