Unions and the Employment Growth: Panel Data Evidence

This study adds to the small empirical literature on the impact unions have on employment growth using data from Australia. Unlike previous studies, the data used are from a panel of firms surveyed at two points in time rather 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 Australia, is consistent with results obtained with North American data.