IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Trade Union Membership and Sickness Absence: Evidence from a Sick Pay Reform

  • Laszlo Goerke
  • Markus Pannenberg

In 1996, statutory sick pay was reduced for private sector workers in Germany. Using the empirical observation that trade union members are dismissed less often than non-members, we construct a model to predict how absence behaviour will respond to the sick pay reform. We show that union members may have stronger incentives to be absent and to react to the cut in sick pay. In the empirical investigation, we find a positive relationship between trade union membership and absence due to sickness and observe more pronounced reactions to the cut in sick pay among union members than among non-members. These findings suggest that more flexibility in the use of paid absence due to sickness constitutes a private gain from trade union membership.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2012/wp-cesifo-2012-08/cesifo1_wp3909.pdf
Download Restriction: no

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3909.

as
in new window

Length:
Date of creation: 2012
Date of revision:
Handle: RePEc:ces:ceswps:_3909
Contact details of provider: Postal: Poschingerstrasse 5, 81679 Munich
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo.deEmail:


More information through EDIRC

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.:

as in new window
  1. Jessica P. Vistnes, 1997. "Gender differences in days lost from work due to illness," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(2), pages 304-323, January.
  2. Georges Dionne & Benoit Dostie, 2005. "New Evidence on the Determinants of Absenteeism Using Linked Employer-Employee Data," Cahiers de recherche 05-04, HEC Montréal, Institut d'économie appliquée.
  3. Andrew K. G. Hildreth, 2000. "Union Wage Differentials for Covered Members and Nonmembers in Great Britain," Journal of Labor Research, Transaction Publishers, vol. 21(1), pages 133-147, January.
  4. Simen Markussen, 2012. "The individual cost of sick leave," Journal of Population Economics, Springer, vol. 25(4), pages 1287-1306, October.
  5. Laszlo Goerke & Markus Pannenberg, 2010. "Trade Union Membership and Dismissals," CESifo Working Paper Series 3196, CESifo Group Munich.
  6. Richard B. Freeman, 1980. "The Exit-Voice Tradeoff in the Labor Market: Unionism, Job Tenure, Quits," NBER Working Papers 0242, National Bureau of Economic Research, Inc.
  7. Hesselius, Patrik & Johansson, Per & Nilsson, Peter, 2009. "Sick of Your Colleagues' Absence?," IZA Discussion Papers 3960, Institute for the Study of Labor (IZA).
  8. Leo Bonato & Lusine Lusinyan, 2004. "Work Absence in Europe," IMF Working Papers 04/193, International Monetary Fund.
  9. J.A.F. Machado & J. M. C. Santos Silva, 2003. "Quantiles for Counts," Econometrics 0303001, EconWPA.
  10. Budd, J.W. & Na, I.G., 1994. "The Union Membership Wage Premium for Employees Covered by Collective Bargaining Agreements," Papers 94-09, Minnesota - Industrial Relations Center.
  11. Nicolas R. Ziebarth, 2009. "Long-Term Absenteeism and Moral Hazard: Evidence from a Natural Experiment," SOEPpapers on Multidisciplinary Panel Data Research 172, DIW Berlin, The German Socio-Economic Panel (SOEP).
  12. Guido M. Imbens & Jeffrey M. Wooldridge, 2008. "Recent Developments in the Econometrics of Program Evaluation," NBER Working Papers 14251, National Bureau of Economic Research, Inc.
  13. Goerke, Laszlo & Pannenberg, Markus, 2009. "An economic analysis of dismissal legislation: Determinants of severance pay in West Germany," Center for European, Governance and Economic Development Research Discussion Papers 87, University of Goettingen, Department of Economics.
  14. Schnabel, Claus & Wagner, Joachim, 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).
  15. Goerke, Laszlo, 2013. "Profit sharing and relative consumption," Economics Letters, Elsevier, vol. 118(1), pages 167-169.
  16. John P. Haisken-DeNew & Markus H. Hahn, 2010. "PanelWhiz - Efficient Data Extraction of Complex Panel Data Sets: An Example Using the German SOEP," Data Documentation 53, DIW Berlin, German Institute for Economic Research.
  17. Leigh, J. Paul, 1985. "The effects of unemployment and the business cycle on absenteeism," Journal of Economics and Business, Elsevier, vol. 37(2), pages 159-170, May.
  18. Olsson, Martin, 2007. "Employment Protection and Sickness Absence," Working Paper Series 717, Research Institute of Industrial Economics.
  19. Schmidt, Christoph M & Zimmermann, Klaus F, 1991. "Work Characteristics, Firm Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 705-10, November.
  20. Ozkan Eren, 2009. "Does Membership Pay off for Covered Workers? A Distributional Analysis of the Free Rider Problem," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 62(3), pages 367-380, April.
  21. García-Serrano, Carlos & Malo, Miguel A., 2009. "The impact of union direct voice on voluntary and involuntary absenteeism," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 372-383, March.
  22. Andersen, Signe Hald, 2010. "The cost of sickness: On the effect of the duration of sick leave on post-sick leave earnings," Social Science & Medicine, Elsevier, vol. 70(10), pages 1581-1589, May.
  23. Goerke, Laszlo & Pannenberg, Markus, 2003. "Norm-Based Trade Union Membership: Evidence for Germany," IZA Discussion Papers 962, Institute for the Study of Labor (IZA).
  24. Mohammed Chaudhury & Ignace Ng, 1992. "Absenteeism Predictors: Least Squares, Rank Regression, and Model Selection Results," Canadian Journal of Economics, Canadian Economics Association, vol. 25(3), pages 615-35, August.
  25. Georges Dionne & Benoit Dostie, 2007. "New Evidence on the Determinants of Absenteeism Using Linked Employer-Employee Data," ILR Review, Cornell University, ILR School, vol. 61(1), pages 108-120, October.
  26. Wolter H.J. Hassink & Pierre Koning, 2009. "Do Financial Bonuses Reduce Employee Absenteeism? Evidence from a Lottery," ILR Review, Cornell University, ILR School, vol. 62(3), pages 327-342, April.
  27. Edward J. Schumacher, 1999. "What Explains Wage Differences Between Union Members and Covered Nonmembers?," Southern Economic Journal, Southern Economic Association, vol. 65(3), pages 493-512, January.
  28. Inga Hillesheim & Mario Mechtel, 2012. "Relative Consumption Concerns or Non-Monotonic Preferences?," IAAEU Discussion Papers 201201, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  29. Steven G. Allen, 1984. "Trade unions, absenteeism, and exit-voice," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 37(3), pages 331-345, April.
  30. JÃrgen Hansen, 2000. "The effect of work absence on wages and wage gaps in Sweden," Journal of Population Economics, Springer, vol. 13(1), pages 45-55.
  31. Moreton, David R., 1998. "An open shop trade union model of wages, effort and membership," European Journal of Political Economy, Elsevier, vol. 14(3), pages 511-527, August.
  32. K.G. Knight & Paul Latreille, 2000. "Discipline, Dismissals and Complaints to Employment Tribunals," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 533-555, December.
  33. Böckerman, Petri & Ilmakunnas, Pekka, 2008. "Interaction of working conditions, job satisfaction, and sickness absences: Evidence from a representative sample of employees," Social Science & Medicine, Elsevier, vol. 67(4), pages 520-528, August.
  34. Justine S. Hastings & Jeffrey M. Weinstein, 2008. "Information, School Choice, and Academic Achievement: Evidence from Two Experiments," The Quarterly Journal of Economics, MIT Press, vol. 123(4), pages 1373-1414, November.
  35. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December.
  36. Busso, Matias & DiNardo, John & McCrary, Justin, 2009. "New Evidence on the Finite Sample Properties of Propensity Score Matching and Reweighting Estimators," IZA Discussion Papers 3998, Institute for the Study of Labor (IZA).
  37. Allen, Steven G, 1981. "An Empirical Model of Work Attendance," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 77-87, February.
  38. Helge Berger & Michael Neugart, 2012. "How German Labor Courts Decide: An Econometric Case Study," German Economic Review, Verein für Socialpolitik, vol. 13(1), pages 56-70, 02.
  39. Leigh, J. Paul, 1991. "Employee and job attributes as predictors of absenteeism in a national sample of workers: The importance of health and dangerous working conditions," Social Science & Medicine, Elsevier, vol. 33(2), pages 127-137, January.
  40. Johansson, Per & Palme, Marten, 2005. "Moral hazard and sickness insurance," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1879-1890, September.
  41. Andrea Ichino & Regina T. Riphahn, 2005. "The Effect of Employment Protection on Worker Effort: Absenteeism During and After Probation," Journal of the European Economic Association, MIT Press, vol. 3(1), pages 120-143, 03.
  42. Veliziotis, Michail, 2010. "Unionization and sickness absence from work in the UK," ISER Working Paper Series 2010-15, Institute for Social and Economic Research.
  43. Hesselius, Patrik, 2007. "Does sickness absence increase the risk of unemployment?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 288-310, April.
  44. Brown, Sarah & Sessions, John G, 1996. " The Economics of Absence: Theory and Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 10(1), pages 23-53, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_3909. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.