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Union Mediation and Adaptation to Reciprocal Loyalty Arrangements

  • Panos, Georgios
  • Theodossiou, Ioannis

This study evaluates behavioural differences between union and non-union workers in their preferences regarding reciprocal loyalty in the employment relationship. It uses a vignettes approach to elicit preferences and a novel dataset with unusually rich information on semi-skilled employees from four European countries. It focuses on reciprocal employer-employee arrangements stating that if the employee exerts higher effort, the employer reciprocates by offering higher job security. Such reciprocal arrangements are found to be valued more highly by unionized workers. The evidence suggests that the norm-enhancing role of union membership is the key candidate explanation of this pattern. Union workers are also found more likely to exercise the ‘voice’ rather than the ‘exit’ option in their current job.

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File URL: https://mpra.ub.uni-muenchen.de/15471/1/MPRA_paper_15471.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15471.

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Date of creation: 27 May 2009
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Handle: RePEc:pra:mprapa:15471
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