IDEAS home Printed from https://ideas.repec.org/a/bla/brjirl/v48y2010i1p84-108.html
   My bibliography  Save this article

Inequality and Union Membership: The Influence of Relative Earnings and Inequality Attitudes

Author

Listed:
  • Daniele Checchi
  • Jelle Visser
  • Herman G. Van De Werfhorst

Abstract

Using surveys from the International Social Survey Programme covering the period 1985–2002 for seven European countries (West and East Germany, Sweden, Norway, Italy, the Netherlands and Great Britain), we examine the effect of relative earnings on union membership and show that union density is higher among workers in the intermediate earnings group than among low or high earners. Next, we examine the association of inequality attitudes with union membership and demonstrate that union membership is not only motivated by instrumental considerations related to relative earnings, but also by normative concerns about inequality. We interpret our findings suggesting that rising earnings inequality is in itself a source of union decline.

Suggested Citation

  • Daniele Checchi & Jelle Visser & Herman G. Van De Werfhorst, 2010. "Inequality and Union Membership: The Influence of Relative Earnings and Inequality Attitudes," British Journal of Industrial Relations, London School of Economics, vol. 48(1), pages 84-108, March.
  • Handle: RePEc:bla:brjirl:v:48:y:2010:i:1:p:84-108
    DOI: 10.1111/j.1467-8543.2009.00757.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-8543.2009.00757.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1467-8543.2009.00757.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hibbs, Douglas Jr. & Locking, Hakan, 1996. "Wage compression, wage drift and wage inflation in Sweden," Labour Economics, Elsevier, vol. 3(2), pages 109-141, September.
    2. Barry T. Hirsch, 1982. "The Interindustry Structure of Unionism, Earnings, and Earnings Dispersion," ILR Review, Cornell University, ILR School, vol. 36(1), pages 22-39, October.
    3. Richard Freeman & Jeffrey Pelletier, 1990. "The Impact of Industrial Relations Legislation on British Union Density," British Journal of Industrial Relations, London School of Economics, vol. 28(2), pages 141-164, July.
    4. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    5. Naylor, Robin, 1990. "A social custom model of collective action," European Journal of Political Economy, Elsevier, vol. 6(2), pages 201-216, October.
    6. Jo Blanden & Stephen Machin, 2003. "Cross‐Generation Correlations of Union Status for Young People in Britain," British Journal of Industrial Relations, London School of Economics, vol. 41(3), pages 391-415, September.
    7. David Metcalf & Kirstine Hansen & Andy Charlwood, 2001. "Unions and the Sword of Justice: Unions and Pay Systems, Pay Inequality, Pay Discrimination and Low Pay," National Institute Economic Review, National Institute of Economic and Social Research, vol. 176(1), pages 61-75, April.
    8. Alex Bryson & Rafael Gomez, 2005. "Why Have Workers Stopped Joining Unions? The Rise in Never‐Membership in Britain," British Journal of Industrial Relations, London School of Economics, vol. 43(1), pages 67-92, March.
    9. Goerke Laszlo & Pannenberg Markus, 2004. "Norm-Based Trade Union Membership: Evidence for Germany," German Economic Review, De Gruyter, vol. 5(4), pages 481-504, December.
    10. Blanchflower, David G., 2006. "A Cross-Country Study of Union Membership," IZA Discussion Papers 2016, Institute of Labor Economics (IZA).
    11. John T. Addison & Ralph W. Bailey & W. Stanley Siebert, 2007. "The Impact of Deunionisation on Earnings Dispersion Revisited," Research in Labor Economics, in: Aspects of Worker Well-Being, pages 337-363, Emerald Group Publishing Limited.
    12. Richard B. Freeman, 1980. "Unionism and the Dispersion of Wages," ILR Review, Cornell University, ILR School, vol. 34(1), pages 3-23, October.
    13. Moene, Karl Ove & Wallerstein, Michael, 1997. "Pay Inequality," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 403-430, July.
    14. Alison L. Booth, 1985. "The Free Rider Problem and a Social Custom Model of Trade Union Membership," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(1), pages 253-261.
    15. Schnabel, Claus & Wagner, Joachim, 2003. "Trade union membership in Eastern and Western Germany: convergence or divergence?," Discussion Papers 18, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    16. Alex Bryson & Rafael Gomez & Morley Gunderson & Noah Meltz, 2005. "Youth-Adult Differences in the Demand for Unionization: Are American, British, and Canadian Workers All That Different?," Journal of Labor Research, Transaction Publishers, vol. 26(1), pages 155-167, January.
    17. David G. Blanchflower & Richard B. Freeman, 1997. "The Attitudinal Legacy of Communist Labor Relations," ILR Review, Cornell University, ILR School, vol. 50(3), pages 438-459, April.
    18. John T. Addison & Claus Schnabel (ed.), 2003. "International Handbook of Trade Unions," Books, Edward Elgar Publishing, number 2705.
    19. Jelle Visser, 2002. "Why Fewer Workers Join Unions in Europe: A Social Custom Explanation of Membership Trends," British Journal of Industrial Relations, London School of Economics, vol. 40(3), pages 403-430, September.
    20. Peter Gottschalk & Mary Joyce, 1998. "Cross-National Differences In The Rise In Earnings Inequality: Market And Institutional Factors," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 489-502, November.
    21. Farber, Henry S & Saks, Daniel H, 1980. "Why Workers Want Unions: The Role of Relative Wages and Job Characteristics," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 349-369, April.
    22. Schnabel, Claus & Wagner, Joachim, 2005. "Determinants of Union Membership in 18 EU Countries : Evidence from Micro Data, 2002/03," Discussion Papers 31, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bram Wauters & Manu Mus & Steven Lannoo & Carl Devos, 2014. "Perfect match or missing link? An analysis of the representativeness of trade union representatives in Belgium," Industrial Relations Journal, Wiley Blackwell, vol. 45(5), pages 424-442, September.
    2. Maarten Keune, 2021. "Inequality between capital and labour and among wage-earners: the role of collective bargaining and trade unions," Transfer: European Review of Labour and Research, , vol. 27(1), pages 29-46, February.
    3. Jonas Pontusson, 2013. "Unionization, Inequality and Redistribution," British Journal of Industrial Relations, London School of Economics, vol. 51(4), pages 797-825, December.
    4. Dierk Herzer, 2016. "Unions and Income Inequality," Economic Development Quarterly, , vol. 30(3), pages 267-274, August.
    5. Fenet Jima Bedaso & Uwe Jirjahn & Lazlo Goerke, 2022. "Immigrants and Trade Union Membership; Does Integration into Society and Workplace Play a Moderating Role?," IAAEU Discussion Papers 202203, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    6. Nickolaos Giovanis & Efstratios Giovanis, 2020. "Assessment On The Change Of Union Density Rate By Means Of Macroeconomic Indicators: A Quantitative Research," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 5(6), pages 63-73, June.
    7. Olivier Guillot & Magali Jaoul-Grammare & Isabelle Terraz, 2019. "Union Membership in France: An Empirical Study," Working Papers of BETA 2019-04, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    8. Cyprien Batut & Ulysse Lojkine & Paolo Santini, 2021. "Which side are you on? A historical perspective on union membership composition in four European countries," Working Papers halshs-03364022, HAL.
    9. Christopher T. Whelan & Bertrand Maître, 2012. "Understanding Material Deprivation in Europe: A Multilevel Analysis," Working Papers 201205, Geary Institute, University College Dublin.
    10. Veliziotis, Michail, 2010. "Trade unions and unpaid overtime in Britain," ISER Working Paper Series 2010-43, Institute for Social and Economic Research.
    11. Elin Svarstad & Ragnar Nymoen, 2023. "Wage inequality and union membership at the establishment level: An econometric study using Norwegian data," Oxford Economic Papers, Oxford University Press, vol. 75(2), pages 371-392.
    12. Louis Chauvel & Martin Schröder, 2017. "A Prey-Predator Model of Trade Union Density and Inequality in 12 Advanced Capitalisms over Long Periods," Kyklos, Wiley Blackwell, vol. 70(1), pages 3-26, February.
    13. Föll, Tobias & Hartmann, Anna, 2019. "A Joint Theory of Polarization and Deunionization," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203558, Verein für Socialpolitik / German Economic Association.
    14. Damian Grimshaw & Gerhard Bosch & Jill Rubery, 2014. "Minimum Wages and Collective Bargaining: What Types of Pay Bargaining Can Foster Positive Pay Equity Outcomes?," British Journal of Industrial Relations, London School of Economics, vol. 52(3), pages 470-498, September.
    15. No authors listed, 2021. "Wie Ungleichheit der Demokratie schadet," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 47(3), pages 297-307.
    16. Christopher Whelan & Bertrand Maitre, 2012. "GINI DP 37: Understanding Material Deprivation in Europe: A Multilevel Analysis," GINI Discussion Papers 37, AIAS, Amsterdam Institute for Advanced Labour Studies.
    17. Bram Lancee & Herman Werfhorst, 2011. "GINI DP 6: Income Inequality and Participation: A Comparison of 24 European Countries," GINI Discussion Papers 6, AIAS, Amsterdam Institute for Advanced Labour Studies.
    18. Fabian Engler & Linda Voigt, 2023. "There is power in a union? Union members' preferences and the conditional effect of labour unions on left parties in different welfare state programmes," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 89-109, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Checchi, Daniele & Visser, Jelle & van de Werfhorst, Herman G., 2007. "Inequality and Union Membership: The Impact of Relative Earnings Position and Inequality Attitudes," IZA Discussion Papers 2691, Institute of Labor Economics (IZA).
    2. Schnabel, Claus & Wagner, Joachim, 2005. "Determinants of Union Membership in 18 EU Countries : Evidence from Micro Data, 2002/03," Discussion Papers 31, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    3. Jonathan E. Booth & John W. Budd & Kristen M. Munday, 2010. "Never Say Never? Uncovering the Never‐Unionized in the United States," British Journal of Industrial Relations, London School of Economics, vol. 48(1), pages 26-52, March.
    4. Schnabel, Claus & Wagner, Joachim, 2005. "Who Are the Workers Who Never Joined a Union? Empirical Evidence from Germany," IZA Discussion Papers 1658, Institute of Labor Economics (IZA).
    5. Schnabel Claus & Wagner Joachim, 2008. "The Aging of the Unions in West Germany, 1980–2006," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(5-6), pages 497-511, October.
    6. Olivier Guillot & Magali Jaoul-Grammare & Isabelle Terraz, 2019. "Union Membership in France: An Empirical Study," Working Papers of BETA 2019-04, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    7. Blanchflower, David G., 2006. "A Cross-Country Study of Union Membership," IZA Discussion Papers 2016, Institute of Labor Economics (IZA).
    8. Nickolaos Giovanis & Efstratios Giovanis, 2020. "Assessment On The Change Of Union Density Rate By Means Of Macroeconomic Indicators: A Quantitative Research," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 5(6), pages 63-73, June.
    9. Schnabel, Claus, 2002. "Determinants of trade union membership," Discussion Papers 15, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    10. Schnabel, Claus, 2012. "Union Membership and Density: Some (Not So) Stylized Facts and Challenges," IZA Discussion Papers 6792, Institute of Labor Economics (IZA).
    11. Schnabel, Claus & Wagner, Joachim, 2003. "Determinants of Trade Union Membership in Western Germany: Evidence from Micro Data, 1980-2000," IZA Discussion Papers 708, Institute of Labor Economics (IZA).
    12. Robin Naylor, 1995. "Unions in Decline?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 22, pages 127-142.
    13. Susan Hayter, 2015. "Unions and collective bargaining," Chapters, in: Janine Berg (ed.), Labour Markets, Institutions and Inequality, chapter 4, pages 95-122, Edward Elgar Publishing.
    14. Adrian Chadi & Laszlo Goerke, 2023. "Seeking shelter in times of crisis? unemployment, perceived job insecurity and trade union membership," Economica, London School of Economics and Political Science, vol. 90(359), pages 1041-1088, July.
    15. Askenazy, Philippe & Breda, Thomas, 2020. "Electoral Democracy at Work," IZA Discussion Papers 13226, Institute of Labor Economics (IZA).
    16. Laszlo Goerke & Markus Pannenberg, 2012. "Risk Aversion and Trade‐Union Membership," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(2), pages 275-295, June.
    17. Bernd Fitzenberger & Karsten Kohn & Alexander C. Lembcke, 2013. "Union Density and Varieties of Coverage: The Anatomy of Union Wage Effects in Germany," ILR Review, Cornell University, ILR School, vol. 66(1), pages 169-197, January.
    18. David G. Blanchflower & Alex Bryson, 2022. "Union Membership Peaks in Midlife," British Journal of Industrial Relations, London School of Economics, vol. 60(1), pages 124-151, March.
    19. Cyprien Batut & Ulysse Lojkine & Paolo Santini, 2021. "Which side are you on? A historical perspective on union membership composition in four European countries," PSE Working Papers halshs-03364022, HAL.
    20. Töngür, Ünal & Elveren, Adem Yavuz, 2014. "Deunionization and pay inequality in OECD Countries: A panel Granger causality approach," Economic Modelling, Elsevier, vol. 38(C), pages 417-425.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:brjirl:v:48:y:2010:i:1:p:84-108. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.