Union membership and the erosion of the Ghent system: Lessons from Finland
Union density declined in Finland by more than 10 percentage points in less than ten years. This paper analyses the reasons behind the decline, using micro data from the 1990s. According to our results, the changes in the composition of the labour force and the changes in the labour market explain about a quarter of this decline. The main reason for the decline appears to be the erosion of the Ghent system, due to the emergence of an independent UI fund that provides unemployment insurance without requiring union membership. Interestingly, we find evidence that the decline in the union density can be attributed to declining inclination of the cohorts born after the early 1960s to become union members.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard Layard & Stephen Nickell, 1998.
"Labour Market Institutions and Economic Performance,"
CEP Discussion Papers
dp0407, Centre for Economic Performance, LSE.
- Nickell, Stephen & Layard, Richard, 1999. "Labor market institutions and economic performance," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 46, pages 3029-3084 Elsevier.
- Nickell, S. & Layard, R., 1997. "Labour Market Institutions and Economic Performance," Papers 23, Centre for Economic Performance & Institute of Economics.
- Holmlund, Bertil & Lundborg, Per, 1996.
"Wage Bargaining, Union Membership, and the Organization of Unemployment Insurance,"
Working Paper Series
1996:17, Uppsala University, Department of Economics.
- Holmlund, Bertil & Lundborg, Per, 1999. "Wage bargaining, union membership, and the organization of unemployment insurance," Labour Economics, Elsevier, vol. 6(3), pages 397-415, September.
- Hagen Lesch, 2004. "Trade Union Density in International Comparison," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 5(4), pages 12-18, December.
- Daniele Checchi & Claudio Lucifora, 2002.
"Unions and labour market institutions in Europe,"
Departmental Working Papers
2002-16, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- David G. Blanchflower & Richard B. Freeman, 1993. "Did the Thatcher Reforms Change British Labour Performance?," NBER Working Papers 4384, National Bureau of Economic Research, Inc.
- Alex Bryson & Rafael Gomez, 2005. "Why Have Workers Stopped Joining Unions? The Rise in Never-Membership in Britain," British Journal of Industrial Relations, London School of Economics, vol. 43(1), pages 67-92, 03.
- Hakola, Tuulia & Uusitalo, Roope, 2005. "Not so voluntary retirement decisions? Evidence from a pension reform," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2121-2136, December.
- Jaakko Pehkonen & Hannu Tanninen, 1997. "Institutions, Incentives and Trade Union Membership," LABOUR, CEIS, vol. 11(3), pages 579-598, November.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpla:0508008. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)
If references are entirely missing, you can add them using this form.