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Norm-Based Trade Union Membership: Evidence for Germany

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Author Info
Goerke, Laszlo () (Johnannes Gutenberg University of Mainz, CESifo and IZA Bonn)
Pannenberg, Markus (DIW Berlin and IZA Bonn)

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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 freeriding. 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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 962.

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Length: 29 pages
Date of creation: Dec 2003
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Handle: RePEc:iza:izadps:dp962

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Related research
Keywords: Germany; norms; social custom; trade union membership;

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Find related papers by JEL classification:
D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
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.:
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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)
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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. 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!]
  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. 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:
  5. 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:
  6. 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!]
  7. 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:
  8. 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!]
  9. 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:
  10. 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:
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