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The Erosion of Union Membership in Germany: Determinants, Densities, Decompositions

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Author Info
Bernd Fitzenberger () (Goethe University Frankfurt, IFS, ZEW and IZA Bonn)
Karsten Kohn () (Goethe University Frankfurt and IZA Bonn)
Qingwei Wang () (Goethe University Frankfurt and ZEW)

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Abstract

Union density in Germany has declined remarkably during the last two decades. We estimate socio-economic and workplace-related determinants of union membership in East and West Germany using data from the German Socio-Economic Panel by means of Chamberlain- Mundlack correlated random effects probit models. Drawing on the estimates, we project net union densities (NUD) and analyze the differences between East and West Germany as well as the corresponding changes in NUD over time. Blinder-Oaxaca decompositions show that changes in the composition of the work force have only played a minor role for the deunionization trends in East and West Germany. In East-West comparison, differences in the characteristics of the work force reflect a lower quality of membership matches in East Germany right after German unification.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2193.

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Length: 39 pages
Date of creation: Jul 2006
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Handle: RePEc:iza:izadps:dp2193

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Related research
Keywords: union membership; union density; correlated random effects probit model; decomposition analysis; East Germany; West Germany;

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Find related papers by JEL classification:
J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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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.:
  1. Goerke, Laszlo & Pannenberg, Markus, 2003. "Norm-Based Trade Union Membership: Evidence for Germany," IZA Discussion Papers 962, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Martin Beck & Bernd Fitzenberger, 2004. "Changes in Union Membership Over Time: A Panel Analysis for West Germany," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 18(3), pages 329-362, 09. [Downloadable!] (restricted)
  3. Grossman, Gene M, 1983. "Union Wages, Temporary Layoffs, and Seniority," American Economic Review, American Economic Association, vol. 73(3), pages 277-90, June. [Downloadable!] (restricted)
  4. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  5. Moreton, David R., 1998. "An open shop trade union model of wages, effort and membership," European Journal of Political Economy, Elsevier, vol. 14(3), pages 511-527, August. [Downloadable!] (restricted)
  6. Berndt Keller, 2005. "Union Formation through Merger: The Case of Ver.di in Germany," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 43(2), pages 209-232, 06. [Downloadable!] (restricted)
  7. Silber, Jacques & Weber, Michael, 1999. "Labour Market Discrimination: Are there Significant Differences between the Various Decomposition Procedures?," Applied Economics, Taylor and Francis Journals, vol. 31(3), pages 359-365, March. [Downloadable!] (restricted)
  8. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Blackwell Publishing, vol. 47(1), pages 225-38, January. [Downloadable!] (restricted)
  9. Corneo, Giacomo, 1995. "Social custom, management opposition, and trade union membership," European Economic Review, Elsevier, vol. 39(2), pages 275-292, February. [Downloadable!] (restricted)
  10. Schnabel, Claus & Wagner, Joachim, 2003. "Trade Union Membership in Eastern and Western Germany: Convergence or Divergence?," IZA Discussion Papers 707, Institute for the Study of Labor (IZA). [Downloadable!]
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  11. 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. [Downloadable!] (restricted)
  12. Booth, Alison L & Chatterji, Monojit, 1995. "Union Membership and Wage Bargaining When Membership is Not Compulsory," Economic Journal, Royal Economic Society, vol. 105(429), pages 345-60, March. [Downloadable!] (restricted)
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  13. Nicola-Maria Riley, 1997. "Determinants of Union Membership: A Review," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 11(2), pages 265-301, 06. [Downloadable!] (restricted)
  14. 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)
  15. Akerlof, George A, 1980. "A Theory of Social Custom, of Which Unemployment May be One Consequence," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 749-75, June. [Downloadable!] (restricted)
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  16. Naylor, Robin, 1989. "Strikes, Free Riders, and Social Customs," The Quarterly Journal of Economics, MIT Press, vol. 104(4), pages 771-85, November. [Downloadable!] (restricted)
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Full references

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. Karsten Kohn & Alexander Lembcke, 2007. "Wage distributions by bargaining regime," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer, vol. 1(3), pages 247-261, December. [Downloadable!] (restricted)
  2. Laszlo Goerke & Markus Pannenberg, 2008. "Risk Aversion and Trade Union Membership," SOEPpapers 88, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  3. 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:
  4. Joachim Wagner & Claus Schnabel, 2006. "The persistent decline in unionization in western and eastern Germany, 1980-2004: What can we learn from a decomposition analysis?," Working Paper Series in Economics 31, University of Lüneburg, Institute of Economics. [Downloadable!]
  5. Schnabel, Claus & Wagner, Joachim, 2008. "The Aging of the Unions in West Germany, 1980–2006," IZA Discussion Papers 3661, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. 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:
  7. Katja Goerlitz, 2009. "The Development of Employers’ Training Investments Over Time – A Decomposition Analysis Using German Establishment Data," Ruhr Economic Papers 0087, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
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