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Slip Sliding Away: Further Union Decline in Germany and Britain

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  • John T. Addison
  • Alex Bryson
  • André Pahnke
  • Paulino Teixeira

Abstract

This paper presents the first comparative analysis of the decline in collective bargaining in two European countries where that decline has been most pronounced. Using workplace-level data and a common model, we present decompositions of changes in collective bargaining and worker representation in the private sector in Germany and Britain over the period 1998-2004. In both countries within-effects dominate compositional changes as the source of the recent decline in unionism. Overall, the decline in collective bargaining is more pronounced in Britain than in Germany, thus continuing a trend apparent since the 1980s. Although workplace characteristics differ markedly across the two countries, assuming counterfactual values of these characteristics makes little difference to unionization levels. Expressed differently, the German dummy looms large.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0971.

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Date of creation: Mar 2010
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Handle: RePEc:cep:cepdps:dp0971

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: union recognition; union coverage; worker representation in works councils/ joint consultative committees; patterns of erosion; behavioural and composition effects; shift share analysis;

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References

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  1. Bernd Fitzenberger & Karsten Kohn & Qingwei Wang, 2011. "The erosion of union membership in Germany: determinants, densities, decompositions," Journal of Population Economics, Springer, vol. 24(1), pages 141-165, January.
  2. 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, 03.
  3. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke & Lutz Bellmann, 2009. "The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain," GEMF Working Papers 2009-14, GEMF - Faculdade de Economia, Universidade de Coimbra.
  4. Stephen Machin, 2000. "Union Decline in Britain," CEP Discussion Papers dp0455, Centre for Economic Performance, LSE.
  5. Brown , W. & Bryson , A. & Forth , J., 2008. "Competition and the Retreat from Collective Bargaining," Cambridge Working Papers in Economics 0831, Faculty of Economics, University of Cambridge.
  6. Addison, John T. & Schnabel, Claus & Wagner, Joachim, 2006. "The (Parlous) State of German Unions," IZA Discussion Papers 2000, Institute for the Study of Labor (IZA).
  7. Alex Bryson & Rafael Gomez, 2005. "Why have workers stopped joining unions? Accounting for the rise in never-membership in Britain," LSE Research Online Documents on Economics 360, London School of Economics and Political Science, LSE Library.
  8. Wagner, Joachim & Schnabel, Claus, 2005. "Who are the workers who never joined a union? Empirical evidence from Germany," Discussion Papers 37, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  9. Stephen Machin, 2000. "Union decline in Britain," LSE Research Online Documents on Economics 20191, London School of Economics and Political Science, LSE Library.
  10. Susanne Kohaut & Claus Schnabel, 2003. "Tarifverträge - nein danke!?, Ausmaß und Einflussfaktoren der Tarifbindung west- und ostdeutscher Betriebe," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 223(3), pages 312-331, May.
  11. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  12. Schnabel, Claus & Zagelmeyer, Stefan & Kohaut, Susanne, 2005. "Collective bargaining structure and its determinants : an empirical analysis with British and German establishment data," IAB Discussion Paper 200516, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  13. Paul Willman & Alex Bryson, 2006. "Accounting for collective action: resource acquisition and mobilization in British unions," LSE Research Online Documents on Economics 19772, London School of Economics and Political Science, LSE Library.
  14. Alex Bryson & Rafael Gomez, 2003. "Why Have Workers Stopped Joining Unions?," CEP Discussion Papers dp0589, Centre for Economic Performance, LSE.
  15. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  16. Ben Jann, 2006. "FAIRLIE: Stata module to generate nonlinear decomposition of binary outcome differentials," Statistical Software Components S456727, Boston College Department of Economics, revised 26 May 2008.
  17. repec:nsr:niesrd:341 is not listed on IDEAS
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Cited by:
  1. Brändle, Tobias & Baumann, Florian, 2013. "Union Bargaining and Intra-Industry Productivity Differentials: Theory and Evidence from Germany," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79852, Verein für Socialpolitik / German Economic Association.
  2. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke & Lutz Bellmann, 2011. "The State of Collective Bargaining and Worker Representation in Germany: The Erosion Continues," GEMF Working Papers 2011-09, GEMF - Faculdade de Economia, Universidade de Coimbra.
  3. Ceyhun Elgin, 2012. "Unionization and informal economy," Economics Bulletin, AccessEcon, vol. 32(3), pages 2615-2623.

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