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Trade Union Membership and Dismissals

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  • Goerke, Laszlo

    ()
    (IAAEU, University of Trier)

  • Pannenberg, Markus

    ()
    (Bielefeld University of Applied Sciences)

Abstract

In Germany, there is no trade union membership wage premium, while the membership fee amounts to 1% of the gross wage. Therefore, prima facie, there are strong incentives to free-ride on the benefits of trade unionism. We establish empirical evidence for a private gain from trade union membership which has hitherto not been documented: in West Germany, union members are less likely to lose their jobs than non-members. In particular, using data from the German Socio-Economic Panel we can show that roughly 50% of the observed raw differential in individual dismissal rates can be explained by the estimated average partial effect of union membership.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5222.

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Length: 31 pages
Date of creation: Sep 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5222

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Keywords: dismissal; free-riding; trade union membership; survey data;

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References

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Citations

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Cited by:
  1. 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.
  2. Laszlo Goerke & Markus Pannenberg, 2012. "Trade Union Membership and Sickness Absence: Evidence from a Sick Pay Reform," SOEPpapers on Multidisciplinary Panel Data Research 470, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Haggeney, Isabelle & Fitzenberger, Bernd & Ernst, Michaela, 1998. "Wer ist noch Mitglied in den Gewerkschaften? Eine Panelanalyse für Westdeutschland," ZEW Discussion Papers 98-11, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Veliziotis, Michail, 2010. "Trade unions and unpaid overtime in Britain," ISER Working Paper Series 2010-43, Institute for Social and Economic Research.
  5. Grund, Christian & Schmitt, Andreas, 2013. "Works Councils, Quits and Dismissals in Germany," IZA Discussion Papers 7361, Institute for the Study of Labor (IZA).
  6. Uwe Jirjahn, 2013. "Der Beitrag der Arbeitsmarktökonomik zur Erforschung von Gewerkschaften und Tarifvertragsbeziehungen in Deutschland," Research Papers in Economics 2013-03, University of Trier, Department of Economics.
  7. Heinz, Matthias & Drzensky, Frank, 2013. "The Hidden Costs of Downsizing," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79764, Verein für Socialpolitik / German Economic Association.
  8. Faccini, Renato & Rosazza Bondibene, Chiara, 2012. "Labour market institutions and unemployment volatility: evidence from OECD countries," Bank of England working papers 461, Bank of England.

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