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I suggest a new explanation of cross-national differences in unionization rates: the size of the labor force. Size matters because the gains unions are able to achieve in collective bargaining depend on the proportion of substitutable workers who are organized, while the costs of organizing depend in part on the absolute number to be recruited. The comparison of the costs and benefits of organizing new workers yields the conclusion that unions in larger labor markets will accept lower levels of unionization. Statistical analysis of cross-national differences in unionization rates among advanced industrial societies in the late 1970s indicates that the size of the labor force and the cumulative participation of leftist parties in government explain most of the variance.
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