Union Incidence in the Public and Private Sectors

Abstract

Union density in the public sector is approximately twice the level of that in the private sector in both Canada and the United States. Canadian data are particularly useful for analysing differences between the public and private sectors because of several industries that have a substantial overlap of ownership between sectors. Sectors therefore may be compared while holding the industry constant. Evidence is presented suggesting that union cost factors, as related to the size of the 'plants,' are important in explaining the high density in the public sector. Employee characteristics appear to play no role. The connection between wage differentials and public sector unionism is also addressed.