Can German Unions Still Cut It?
That trade unionism is in decline is seems to be beyond dispute. More controversial is the implied change in union impact on worker wages. In using a linked employer-employee dataset over an interval of continuing decline in unionism, namely 2000-2010, this paper addresses this very issue. It is found that joining a sectoral agreement always produces higher wages, while exiting a sectoral agreement no longer produces wage losses if the transition is to a firm agreement. Leaving a firm agreement to non-coverage also leads to wage reductions, while joining one from non-coverage seems decreasingly favourable. At the end of the day, there is one constant: although small, the positive union wage gap persists.
|Date of creation:||Feb 2015|
|Date of revision:|
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