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Slip Sliding Away: Further Union Decline in Germany and Britain

  • John T. Addison
  • Alex Bryson
  • André Pahnke
  • Paulino Teixeira

This paper presents the first comparative analysis of the decline in collective bargaining in two European countries where that decline has been most pronounced. Using workplace-level data and a common model, we present decompositions of changes in collective bargaining and worker representation in the private sector in Germany and Britain over the period 1998-2004. In both countries within-effects dominate compositional changes as the source of the recent decline in unionism. Overall, the decline in collective bargaining is more pronounced in Britain than in Germany, thus continuing a trend apparent since the 1980s. Although workplace characteristics differ markedly across the two countries, assuming counterfactual values of these characteristics makes little difference to unionization levels. Expressed differently, the German dummy looms large.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0971.

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Date of creation: Mar 2010
Date of revision:
Handle: RePEc:cep:cepdps:dp0971
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  1. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  2. Addison, John T. & Schnabel, Claus & Wagner, Joachim, 2006. "The (Parlous) State of German Unions," IZA Discussion Papers 2000, Institute for the Study of Labor (IZA).
  3. Stephen Machin, 2000. "Union Decline in Britain," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 631-645, December.
  4. Bernd Fitzenberger & Karsten Kohn & Qingwei Wang, 2011. "The erosion of union membership in Germany: determinants, densities, decompositions," Journal of Population Economics, Springer, vol. 24(1), pages 141-165, January.
  5. John T. Addison & Lutz Bellman & Alex Bryson & André Pahnke & Paulino Teixeira, 2009. "The Extent of Collective Bargaining and Workplace Representation: Transitions between States and their Determinants. A Comparative Analysis of Germany and Great Britain," CEP Discussion Papers dp0954, Centre for Economic Performance, LSE.
  6. Alex Bryson & Rafael Gomez, 2003. "Why Have Workers Stopped Joining Unions?," CEP Discussion Papers dp0589, Centre for Economic Performance, LSE.
  7. Alex Bryson & Rafael Gomez, 2005. "Why Have Workers Stopped Joining Unions? The Rise in Never-Membership in Britain," British Journal of Industrial Relations, London School of Economics, vol. 43(1), pages 67-92, 03.
  8. Alex Bryson & Rafael Gomez, 2005. "Why have workers stopped joining unions? Accounting for the rise in never-membership in Britain," LSE Research Online Documents on Economics 360, London School of Economics and Political Science, LSE Library.
  9. Alex Bryson & P Willman, 2006. "Accounting for Collective Action: Resource Acquisition and Mobilization in British Unions," CEP Discussion Papers dp0768, Centre for Economic Performance, LSE.
  10. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  11. Schnabel, Claus & Wagner, Joachim, 2005. "Who Are the Workers Who Never Joined a Union? Empirical Evidence from Germany," IZA Discussion Papers 1658, Institute for the Study of Labor (IZA).
  12. Gabriele Fischer & Florian Janik & Dana Müller & Alexandra Schmucker, 2009. "European Data Watch: The IAB Establishment Panel - Things Users Should Know," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(1), pages 133-148.
  13. Susanne Kohaut & Claus Schnabel, 2003. "Tarifverträge - nein danke!?, Ausmaß und Einflussfaktoren der Tarifbindung west- und ostdeutscher Betriebe," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 223(3), pages 312-331, May.
  14. Schnabel, Claus & Zagelmeyer, Stefan & Kohaut, Susanne, 2005. "Collective bargaining structure and its determinants : an empirical analysis with British and German establishment data," IAB Discussion Paper 200516, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  15. repec:nsr:niesrd:341 is not listed on IDEAS
  16. Brown , W. & Bryson , A. & Forth , J., 2008. "Competition and the Retreat from Collective Bargaining," Cambridge Working Papers in Economics 0831, Faculty of Economics, University of Cambridge.
  17. Ben Jann, 2006. "FAIRLIE: Stata module to generate nonlinear decomposition of binary outcome differentials," Statistical Software Components S456727, Boston College Department of Economics, revised 26 May 2008.
  18. 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.
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