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Norm-Based Trade Union Membership: Evidence for Germany

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Author Info
Laszlo Goerke
Markus Pannenberg

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Abstract

In the absence of closed shops and discriminatory wage policies, union membership can be explained by the existence of social norms. We describe a model, incorporating institutional features of the German labour market, which explicitly allows for social custom effects in the determination of union membership. Using panel data for Germany, we find evidence for according effects which restrict free-riding. The impact of social norms tends to increase with net union density. Hence, observed reductions in the demand for union membership can weaken the impact of a norm and accentuate the free-rider problem. Copyright Verein für Socialpolitik and Blackwell Publishing Ltd. 2004.

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Article provided by Blackwell Publishing in its journal German Economic Review.

Volume (Year): 5 (2004)
Issue (Month): 4 (November)
Pages: 481-504
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Handle: RePEc:bla:germec:v:5:y:2004:i:4:p:481-504

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. George A. Akerlof, 1978. "A theory of social custom, of which unemployment may be one consequence," Special Studies Papers 118, Board of Governors of the Federal Reserve System (U.S.).
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  3. Jelle Visser, 2002. "Why Fewer Workers Join Unions in Europe: A Social Custom Explanation of Membership Trends," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 40(3), pages 403-430, 09. [Downloadable!] (restricted)
  4. Ichino, Andrea & Maggi, Giovanni, 2000. "Work Environment And Individual Background: Explaining Regional Shirking Differentials In A Large Italian Firm," CEPR Discussion Papers 2387, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Lai, Ching-chong & Chang, Juin-jen & Chang, Wen-ya, 2001. "Currency devaluation in an open-shop union," International Review of Economics & Finance, Elsevier, vol. 10(1), pages 61-74. [Downloadable!] (restricted)
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  7. Lai, Ching-Chong & Yang, Chih-Yu & Chang, Juin-Jen, 2003. "Environmental Regulations and Social Norms," International Tax and Public Finance, Springer, vol. 10(1), pages 63-75, January. [Downloadable!] (restricted)
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  9. Ingham, Mike, 1995. "Union Joining: An Empirical Test of the Social Custom Model," Applied Economics Letters, Taylor and Francis Journals, vol. 2(8), pages 245-47, August. [Downloadable!] (restricted)
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  12. Naylor, Robin, 1990. "A social custom model of collective action," European Journal of Political Economy, Elsevier, vol. 6(2), pages 201-216, October. [Downloadable!] (restricted)
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  13. Holmlund, Bertil & Lundborg, Per, 1996. "Wage Bargaining, Union Membership, and the Organization of Unemployment Insurance," Working Paper Series 1996:17, Uppsala University, Department of Economics.
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  14. Myles, Gareth D. & Naylor, Robin A., 1996. "A model of tax evasion with group conformity and social customs," European Journal of Political Economy, Elsevier, vol. 12(1), pages 49-66, April. [Downloadable!] (restricted)
  15. Fitzenberger, Bernd & Beck, Martin, 2003. "Changes in Union Membership Over Time : A Panel Analysis for West Germany," ZEW Discussion Papers 03-42, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  18. Booth, Alison L & Chatterji, Monojit, 1993. "Reputation, Membership and Wages in Open Shop Trade Union," Oxford Economic Papers, Oxford University Press, vol. 45(1), pages 23-41, January. [Downloadable!] (restricted)
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  20. Naylor, Robin & Raaum, Oddbjorn, 1993. "The Open Shop Union, Wages, and Management Opposition," Oxford Economic Papers, Oxford University Press, vol. 45(4), pages 589-604, October. [Downloadable!] (restricted)
  21. Booth, Alison L, 1985. "The Free Rider Problem and a Social Custom Model of Trade Union Membership," The Quarterly Journal of Economics, MIT Press, vol. 100(1), pages 253-61, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. John T. Addison & Claus Schnabel & Joachim Wagner, 2006. "The (Parlous) State of German Unions," IZA Discussion Papers 2000, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Claus Schnabel & Joachim Wagner, 2006. "The Persistent Decline in Unionization in Western and Eastern Germany, 1980-2004: What Can We Learn from a Decomposition Analysis?," IZA Discussion Papers 2388, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Claus Schnabel & Joachim Wagner, 2008. "The Aging of the unions in West Germany, 1980-2006," Working Paper Series in Economics 93, University of Lüneburg, Institute of Economics. [Downloadable!]
    Other versions:
  4. Daniele Checchi & Jelle Visser & Herman G. van de Werfhorst, 2007. "Inequality and Union Membership: The Impact of Relative Earnings Position and Inequality Attitudes," IZA Discussion Papers 2691, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Laszlo Goerke & Markus Pannenberg, 2008. "Risk Aversion and Trade Union Membership," SOEPpapers 88, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  6. Laszlo Goerke & Markus Pannenberg, 2007. "Trade Union Membership and Works Councils in West Germany," IZA Discussion Papers 2635, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. Claus Schnabel & Joachim Wagner, 2005. "Who are the workers who never joined a union? Empirical evidence from Germany," Working Paper Series in Economics 12, University of Lüneburg, Institute of Economics. [Downloadable!]
    Other versions:
  8. Bernd Fitzenberger & Karsten Kohn & Qingwei Wang, 2006. "The Erosion of Union Membership in Germany: Determinants, Densities, Decompositions," IZA Discussion Papers 2193, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  9. Gürtzgen, Nicole, 2005. "Rent-Sharing and Collective Bargaining Coverage ? Evidence from Linked Employer-Employee Data," ZEW Discussion Papers 05-90, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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