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Unemployment, Real Wages and Union Membership

Author

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  • Schmidt, Christoph M
  • Zimmermann, Klaus F

Abstract

This paper investigates economic determinants and effects of aggregate union membership in the Federal Republic of Germany. We establish that in the long run, high union membership levels coincide not only with a large labour force, but also with a high level of real wages, a small dispersion of wages, and with a relatively large share of aggregate income going to workers. In the short run, union membership dynamics are mainly driven by changes in unemployment. In turn, changes in union membership cause none of the dynamics of other economic aggregates.

Suggested Citation

  • Schmidt, Christoph M & Zimmermann, Klaus F, 1993. "Unemployment, Real Wages and Union Membership," CEPR Discussion Papers 801, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:801
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    Citations

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    Cited by:

    1. Haggeney, Isabelle & Fitzenberger, Bernd & Ernst, Michaela, 1998. "Wer ist noch Mitglied in den Gewerkschaften? Eine Panelanalyse für Westdeutschland," ZEW Discussion Papers 98-11, ZEW - Leibniz Centre for European Economic Research.
    2. Clemens Fuest & Marcel Thum, 2001. "Gains from migration in imperfect labour markets?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 54(08), pages 28-31, May.

    More about this item

    Keywords

    Centralization; Cointegration; Unemployment; Union Membership; Unions;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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