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Changes in Union Membership Over Time : A Panel Analysis for West Germany

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Author Info
Fitzenberger, Bernd
Beck, Martin
Abstract

Despite the apparent stability of the wage bargaining institutions in West Germany, aggregate union membership has been declining dramatically since the early 90's. However, aggregate gross membership numbers do not distinguish by employment status and it is impossible to disaggregate these sufficiently. This paper uses four waves of the German Socioeconomic Panel in 1985, 1989, 1993, and 1998 to perform a panel analysis of net union membership among employees. We estimate a correlated random effects probit model suggested in Chamberlain (1984) to take proper account of individual specfic effects. Our results suggest that at the individual level the propensity to be a union member has not changed considerably over time. Thus, the aggregate decline in membership is due to composition effects. We also use the estimates to predict net union density at the industry level based on the IAB employment subsample for the time period 1985 to 1997. --

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Publisher Info
Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 03-42.

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Date of creation: 2003
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Handle: RePEc:zbw:zewdip:1351

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Related research
Keywords: union membership; gross and net union density; correlated random effects probit model;

Find related papers by JEL classification:
J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

Cited by:
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  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!]
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  2. Schettkat, Ronald, 2003. "Koordination von Lohnverhandlungen (Coordination of wage bargaining)," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 36(4), pages 634-648. [Downloadable!]
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