Union decline and the coverage wage gap in Germany

Abstract

"Using linked employer-employee data, this paper provides new estimates of the effect of collective bargaining coverage on wages over an interval of pronounced decline in collective bargaining coverage. Unobserved firm and worker heterogeneity is dealt with using two establishment sub-samples of collective bargaining joiners and never members on the one hand and collective bargaining leavers and always members on the other, each in combination with subsets of worker job stayers. Leaving a sectoral agreement is always found to produce lower wages, while joining one no longer produces wages gains. These results are consistent with the observed decline in unionism." (Author's abstract, IAB-Doku) ((en))

Cite article

Addison, J., Teixeira, P., Stephani, J. & Bellmann, L. (2014): Union decline and the coverage wage gap in Germany. (IZA discussion paper 8257), Bonn, 40 p.