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Trade Union Membership and Bonus Payments: German Survey Evidence

Author

Listed:
  • Marco Clemens

    (Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University)

  • Laszlo Goerke

    (Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University)

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 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 of bonuses, and a higher amount 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 wage decreases.

Suggested Citation

  • Marco Clemens & Laszlo Goerke, 2025. "Trade Union Membership and Bonus Payments: German Survey Evidence," IAAEU Discussion Papers 202503, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  • Handle: RePEc:iaa:dpaper:202503
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    bonus payments; collective bargaining; GSOEP; trade union membership;
    All these keywords.

    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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