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Trade union membership and bonus payments: German survey evidence

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  • Clemens, Marco
  • Goerke, Laszlo

Abstract

This study provides the first comprehensive investigation of the relationship between trade union membership and non-performance-oriented bonuses. We expect a positive impact of union membership because members can benefit from special entitlements, increased bargaining power and informational advantages. Using data from the German Socio-economic Panel (GSOEP), we observe that union members are more likely to receive at least one bonus payment per year, a higher number and amount of bonuses than comparable non-members. We also observe the positive union membership effect for employees covered by collective bargaining or co-determination via works councils. Employing a novel instrumental variable, we find evidence of a positive effect of union membership on the number and level of bonus payments. Furthermore, higher bonuses do not go along with decreases in base wages or other pay components.

Suggested Citation

  • Clemens, Marco & Goerke, Laszlo, 2026. "Trade union membership and bonus payments: German survey evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 242(C).
    • Handle: RePEc:eee:jeborg:v:242:y:2026:i:c:s0167268125005219
    DOI: 10.1016/j.jebo.2025.107404
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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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