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Turning Non-members into Members: Do Public Subsidies to Union Membership Matter?

Author

Listed:
  • Erling Barth

    (Institute for Social Research, Oslo)

  • Alex Bryson

    (University College London, IZA, and NIESR)

  • Harald Dale-Olsen

    (Institute for Social Research, Oslo, and IZA)

Abstract

Using linked employer-employee data for Norway we estimate the impact of changes in tax subsidies for union membership on individuals’ membership probabilities. Increased subsidisation of the unions increases union take-up, while increased union fees reduce the demand for membership. The price elasticity of demand for union membership is -9 percent in 2012, though effects are heterogeneous across workers. In the absence of the hikes in tax subsidies and holding workforce composition constant aggregate private sector union membership density would have fallen by 5 percentage points between 2001 and 2012. But it would have fallen by 10 percentage points among those on temporary contracts, for instance.

Suggested Citation

  • Erling Barth & Alex Bryson & Harald Dale-Olsen, 2022. "Turning Non-members into Members: Do Public Subsidies to Union Membership Matter?," DoQSS Working Papers 22-05, Quantitative Social Science - UCL Social Research Institute, University College London.
    • Handle: RePEc:qss:dqsswp:2205
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    More about this item

    Keywords

    trade unions; union membership; wages; tax subsidies;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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