Becke , Bjö n; Goe ke, Laszlo; Huang, Yue
A icle — Published Ve sion
T ade Unions and Li e Sa is ac ion in Ge many
B i ish Jou nal o Indus ial Rela ions
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B i ish Jou nal o Indus ial Rela ions
ORIGINAL ARTICLE
T ade Unions and Li e Sa is ac ion in Ge many
Bjö n Becke 1Laszlo Goe ke2Yue Huang3
1T ie Uni e si y - IAAEU (Ins i u e o Labou Law and Indus ial Rela ions in he Eu opean Union), T ie , Ge many 2T ie Uni e si y - IAAEU (Ins i u e o
Labou Law and Indus ial Rela ions in he Eu opean Union), IZA, Bonn, CESi o, München and GLO 3T ie Uni e si y - IAAEU (Ins i u e o Labou Law and
Indus ial Rela ions in he Eu opean Union), and GLO
Co espondence: Laszlo Goe ke ([email p o ec ed])
Recei ed: 17 Feb ua y 2024 Re ised: 23 Augus 2024 Accep ed: 22 No embe 2024
Keywo ds: Ge man socio-economic panel | indus ial ela ions in Ge many | li e sa is ac ion | ade union membe ship
ABSTRACT
The e ec s o ade union membe ship on wages and job sa is ac ion ha e been s udied ex ensi ely. A guably, li e sa is ac ion
se es as a mo e comp ehensi e measu e o he bene i s o union membe ship and wa an s close examina ion. Using all
ele an wa es om he Ge man Socio-Economic Panel be ween 1985 and 2019, we ind a nega i e co ela ion be ween ade
union membe ship and li e sa is ac ion in OLS and FE speci ica ions. The associa ion may a ise because union membe s a e mo e
conce ned abou hei job and he economic si ua ion and less sa is ied wi h hei wo k. Social capi al and wages also pe o m
as channels be ween membe ship and li e sa is ac ion. The nega i e co ela ion is mo e p onounced in se ings in which ade
unions a e ela i ely weak.
JEL Classi ica ion: I 31, J 28, J 51
1 In oduc ion
T ade unions, like many o he in e es g oups, aim o imp o e he
well-being o hei cons i uency. Since one o cen al objec i es
is o aise wages, he wage ma k-up ep esen s an impo an
indica o o union success. While his wage gain o union
membe s a ies ac oss coun ies and o e ime, i is mos ly
posi i e (Fang and Ha ley 2022) and o en subs an ial enough
o exceed he cos s due o membe ship ees. The wage p emium
may, howe e , be an inadequa e indica o o he well-being
consequences o union membe ship. Fi s , unions a ec o he
wo king condi ions. This impac could be posi i e i , o example,
ade unions ba gain o be e sa e y s anda ds. The e ec could
be nega i e i highe wages induce employe s o educe non-
wage bene i s, in o de o slow down he inc ease in labou cos s.
Second, bene i s associa ed wi h ade union membe ship, such
as g ea e aca ion en i lemen s o suppo in case o con lic s
wi h he employe , may ha e non-mone a y elemen s. Thi d, he
gains om union membe ship may be dis ibu ed une enly and
non-mone a y bene i s may acc ue o o he membe s han o
hose who ob ain he wage inc eases. Fou h, o he employees’
decision whe he o be a union membe , he subjec i e e alua ion
o he consequences o membe ship may be mo e ele an han
objec i e indica o s, such as highe wages o g ea e inge
bene i s. Acco dingly, analyses o he impac o ade unions
on hei membe s’ well-being ha e equen ly ocused on job
sa is ac ion (see, e.g., he me a-analysis by La oche 2016 and he
su eys by A z and Heywood 2021 and Goe ke 2021). Howe e ,
as i is he case o he union wage ma k-up, job sa is ac ion
may also be an insu icien indica o o he en i e well-being
e ec s o union membe ship. Fi s , wo k- ela ed co ela es o
union membe ship can ha e b oade sa is ac ion e ec s. Second,
employees may ade o a lowe u ili y om he job agains a
highe non-wo k u ili y esul ing om union membe ship, o
ice e sa. Acco dingly, in es iga ing he li e sa is ac ion e ec s o
union membe ship can o e insigh s beyond hose gained om
This is an open access a icle unde he e ms o he C ea i e Commons A ibu ion License, which pe mi s use, dis ibu ion and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly
ci ed.
© 2024 The Au ho (s). B i ish Jou nal o Indus ial Rela ions published by John Wiley & Sons L d.
462 B i ish Jou nal o Indus ial Rela ions,2025;63:462–477
h ps://doi.o g/10.1111/bji .12861
examining wages o job sa is ac ion. Consequen ly, his pape
explo es he ela ionship be ween ade union membe ship and
li e sa is ac ion.
We ocus on Ge many, he la ges economy in he Eu opean
Union (EU), using da a om all wa es o he Ge man
Socio-Economic Panel (SOEP) be ween 1985 and 2019 ha include
in o ma ion abou a esponden ’s ade union membe ship. In
Ge many, union membe ship is no ied o a job and, he e o e,
dis inc om co e age by a collec i e ba gaining con ac .
While a collec i e ag eemen binds he i ms i co e s and he
membe s o he con ac ing ade union, co e ed employe s
usually apply ag eemen s o he en i e wo k o ce, i espec i e
o an indi idual’s union membe ship s a us. In consequence,
many employees ee- ide on he bene i s o union-nego ia ed
ba gaining ag eemen s. These ea u es make he Ge man case
pa icula ly in e es ing as he bene i s o union membe ship and
he well-being consequences a e less ob ious han in coun ies
whe e membe ship and ba gaining co e age a e mo e closely
aligned as, o example, in he Uni ed S a es.
As ou i s con ibu ion, we documen a obus nega i e co e-
la ion be ween ade union membe ship and li e sa is ac ion o
pooled c oss-sec ional da a and when conside ing ime-in a ian
unobse able indi idual cha ac e is ics. This inding is consis en
wi h he esul s conce ning job sa is ac ion o Ge many, bu is
no in line wi h he sca ce e idence on he li e sa is ac ion e ec s
o union membe ship o o he coun ies.
P e ious in es iga ions ha e pu o wa d se e al explana ions
o a posi i e co ela ion. I , o example, membe ship esul s
in a wage di e en ial, his can ep esen a channel by which
membe ship con ibu es o li e sa is ac ion. Empi ically, he
explana ion can be assessed by compa ing es ima ion esul s
wi h and wi hou wage in o ma ion as a co a ia e. As ou
second con ibu ion, we analyse a ious explana ions o he
obse ed nega i e co ela ion be ween union membe ship and
li e sa is ac ion. Ou analysis sugges s ha union membe s a e
mo e conce ned abou job secu i y and hei own economic
si ua ion han compa able non-membe s. These complemen a y
explana ions can help o cla i y why union membe s a e less
sa is ied wi h hei li e. Mo eo e , hese e ec s a e no ully
e lec ed in di e en ial le els o job sa is ac ion, sugges ing ha
li e sa is ac ion may be a mo e comp ehensi e indica o o he
well-being consequences o union membe ship. We, u he mo e,
ind ha union membe s ea n highe wages and ha e g ea e
social capi al han non-membe s. Con olling o hese wo com-
plemen a y aspec s s eng hens he nega i e co ela ion be ween
union membe ship and li e sa is ac ion. When accoun ing o all
i e explana ions, we con inue o obse e a nega i e associa ion,
sugges ing he need o u he wo k on he causes o a nega i e
co ela ion.
As ou hi d con ibu ion, we analyse he ole o he wo cen al
pilla s o indus ial ela ions in Ge many. The i s pilla is
collec i e ba gaining. The second pilla is co-de e mina ion,
pa icula ly h ough wo ks councils in he p i a e sec o and
pe sonnel councils in he public sec o . Ou indings sugges ha
he nega i e co ela ion be ween union membe ship and li e sa -
is ac ion is much weake o does no a ise in su oundings whe e
unions ha e a mo e signi ican impac on wo king condi ions,
ha is in co-de e mined i ms o hose co e ed by collec i e
ba gaining. Ins ead, i is obse able p ima ily in se ings whe e
ade unions a e ela i ely weak.
The u he pape p oceeds as ollows: Sec ion 2p o ides some
backg ound in o ma ion on he Ge man labou ma ke and he
ole o ade unions. Sec ion 3ou lines he heo e ical consid-
e a ions, which cons i u e he basis o ou analysis. Sec ion 4
summa izes he p e ious li e a u e. In Sec ion 5, we in oduce
he da a and desc ibe he empi ical model. Sec ion 6p esen s ou
indings, while Sec ion 7concludes he pape .
2Ins i u ional Backg ound
In Ge many, ba gaining co e age in he p i a e sec o has
declined o 50% in 2021, while i s ill ho e s a ound 90% in
he public domain. Roughly, ou ou o i e employees subjec
o a collec i e ag eemen a e co e ed by one nego ia ed a he
sec o al le el, while he emaining 20% bene i om a con ac
signed by a single i m and a ade union (Ellgu h and Kohau
2022). Mo eo e , he e a e subs an ial di e ences in co e age
a es acco ding o i m size. While abou 80% o i ms wi h mo e
han 500 employees ha e signed a collec i e ag eemen o belong
o an employe associa ion ha has done so, his is ue o
only 2 ou o 3 i ms wi h 200–500 employees and less han 50%
wi h 50–199 s a membe s (Ellgu h and Kohau 2022). Fi ms
no subjec o collec i e ag eemen s can nego ia e wages and
wo king condi ions indi idually wi h hei s a . In abou 50%
o he ele an con ac s, a leas pay is aligned o a collec i e
ag eemen (Hohendanne and Kohau 2023).
Ne union densi y equalled 16.3% in 2019. I has declined sub-
s an ially o e he las decades, om a peak o abou 36% jus
a e e-uni ica ion in 1990 (OECD and AIAS 2021). Union densi y
among males is abou 50% highe han among emales. Union
membe s gene ally pay a ( ax-deduc ible) membe ship ee o 1% o
hei g oss wage. In exchange, ade unions, o example, p o ide
hem wi h s ike pay and ad ice in case o employmen - ela ed
con lic s. Fu he mo e, union membe s bene i om inancial
ad an ages, such as educed insu ance con ibu ion a es o
p ice educ ions o some leisu e ac i i ies. Addi ionally, he e
is e idence ha union membe s a e be e p o ec ed agains
dismissals and able o u ilize hei aca ion en i lemen s o a
g ea e ex en han non-membe s (Goe ke and Pannenbe g 2011;
Goe ke, Jewo ek, and Pannenbe g 2015).
One o he main bene i s o union membe ship can be a wage
p emium. The e is subs an ial e idence o he Uni ed S a es and
o he coun ies o such a p emium o 10% o mo e (su eyed,
e.g., by Fang and Ha ley 2022). In con as , mos s udies o
Ge many sugges he absence o wage di e ences be ween union
membe s and non-membe s (see, e.g., Schmid and Zimme mann
1991, Fi zenbe ge , E ns , and Haggeney 1999, and Goe ke and
Pannenbe g 2004). Somewha in con as , Wagne (1991) epo sa
posi i e wage e ec o union membe ship o blue-colla wo ke s
o abou 4.5% and a nega i e one o whi e-colla employees
o a compa able magni ude, using da a o Wes Ge many in
1985. Mo e ecen ly, Bonaccol o-Töp e and Schnabel (2023)doc-
umen a union membe ship wage p emium o 2.5% o 2015 and
2019.
463
One eason o he absence o o a ela i ely small union
membe ship wage e ec is ha membe ship is no ied o a job
and, he e o e, dis inc om co e age by a collec i e ba gaining
con ac . This can al eady be obse ed when compa ing he
ba gaining co e age o union densi y. F om a legal pe spec i e,
collec i e ba gaining ag eemen s apply o all i ms co e ed by
he con ac and union membe s who wo k in he co e ed
i m. Indi iduals in co e ed i ms canno be o ced o join
a ade union, o o suppo unions inancially. Acco ding o
Hi sch, Len ge, and Schnabel (2022), mo e han 90% o employees
wo king in i ms co e ed by a collec i e ba gaining ag eemen a e
ac ually paid acco ding o i . Due o da a limi a ions, he s udy
canno ela e he non-paymen o collec i ely ba gained wages o
he union s a us o employees. None heless, he subs an ial di e -
ence be ween ba gaining co e age and union densi y implies ha
many employees ee- ide on he bene i s o union-nego ia ed
ba gaining ag eemen s in Ge many.1
While (sec o al) collec i e ba gaining cons i u es one o he
main pilla s o he Ge man sys em o indus ial ela ions, co-
de e mina ion ep esen s he second such co ne s one (Jäge ,
Noy, and Schoe e 2022). Wo ks councils can be es ablished
in p i a e-sec o i ms wi h a leas i e employees. Wo ks
councils ha e in o ma ion, consul a ion and co-de e mina ion
igh s. The la e a e mo e ex ensi e conce ning pe sonnel pol-
icy and social a ai s and less p onounced ega ding inancial
and economic aspec s. Co-de e mina ion is no subs i u e bu
a he a complemen o collec i e ba gaining. Wo ks councils
a e, o example, no allowed o nego ia e wages i a collec i e
ba gaining de e mines hem and hey a e o bidden o ini ia e a
s ike.
Since wo ks councils a e no compulso y, hey exis in less
han 10% o all eligible p i a e-sec o es ablishmen s. Pe sonnel
councils, he public-sec o equi alen o wo ks councils, ha e
b oadly he same igh s and a e much mo e widesp ead. As
wo ks councils a e mo e likely o exis in la ge han in small
es ablishmen s, abou 40% o all p i a e-sec o employees a e
employed in i ms wi h a wo ks council.2In consequence, he
wo pilla s o he indus ial ela ions sys em co-exis especially
in la ge es ablishmen s, and mo e han 80% o he employees
in plan s wi h a wo k o ce o mo e han 500 indi iduals a e
co e ed by a collec i e ba gaining ag eemen and simul aneously
ep esen ed by a wo ks council (Ellgu h and Kohau 2022).
T ade unions and wo ks and pe sonnel councils o en closely
coope a e and mo e han hal o wo ks council membe s ac ually
belong o a ade union (Goe ke and Pannenbe g 2024). Howe e ,
councils and unions a e dis inc en i ies and, he e o e, dese e
sepa a e conside a ion.
3Theo e ical Conside a ions
3.1 Indi idual Union Membe ship and Li e
Sa is ac ion
I he union membe ship decision is based on a a ional choice,
an employee will be a membe i he esul ing (expec ed) u ili y
exceeds he (expec ed) u ili y om non-membe ship (Boo h 1985;
Boo h and Cha e ji 1993; Ba h e al. 2020;Oswald1982). While
u ili y is di icul o measu e, he e is ex ensi e e idence on
people’s li e sa is ac ion. I such sa is ac ion measu e cons i u es a
sui able p oxy o u ili y (see, in e alia, Blanch lowe and Oswald
2004 and Rayo and Becke 2007), we can expec li e sa is ac ion
o inc ease wi h ade union membe ship (see, e.g., Fla in, Pacek,
and Radcli 2010; Fla in and Shu eld 2016; Keane, Pacek, and
Radcli 2012; Radcli 2005).
Because union membe s and non-membe s can di e , o exam-
ple, in demog aphic and job- ela ed aspec s, which, in u n,
impac on li e sa is ac ion, he expec ed co ela ion may no
always be disce nible in c oss-sec ional analyses. An empi ical
speci ica ion ha accoun s o ime-in a ian indi idual cha -
ac e is ics enables us o ela e empi ical esul s and heo e ical
p edic ions mo e closely. The e o e, i may be mo e likely ha
indi idual ixed e ec s (FE) speci ica ions e eal a posi i e
co ela ion be ween an indi idual’s union membe ship and
li e sa is ac ion.
Empi ical s udies, while o en implici ly o explici ly based on he
abo e line o a gumen , ha e mos ly looked a job sa is ac ion.3
Howe e , ocussing on his linkage can neglec impo an de e -
minan s o well-being, which a e no di ec ly ela ed o he job.
I , o example, union membe ship p o ides indi iduals wi h
aluable in o ma ion abou aspec s no ela ed o wo k, o e s
hem he oppo uni y o pu chase goods a educed p ices o
enables people o lead a socially mo e ac i e li e, his can esul
in an inc ease in li e sa is ac ion wi hou ha ing an impac on
he e alua ion o he job. Mo eo e , e en job- ela ed aspec s, such
as job secu i y, may a ec job and li e sa is ac ion di e en ly i ,
o example, job- ela ed unce ain y has an impac on he amily.
I , he e o e, union membe ship in ol es bene i s–o cos s–no
associa ed wi h o ex ending beyond he job, li e sa is ac ion
will be a s ic ly be e p oxy o he u ili y de i ed om being
a union membe han wages o job sa is ac ion. In addi ion,
li e sa is ac ion can e lec an indi idual’s e alua ion o he
consequences o union membe ship, which is likely o be a mo e
ele an de e minan o beha iou han ac ual e ec s, such as he
union wage ma k-up.
3.2 Channels
In ea lie con ibu ions, a ious channels ha e been p oposed
h ough which union membe ship could posi i ely a ec li e
sa is ac ion. Fi s , union membe ship and li e sa is ac ion may
be co ela ed because o a union membe ship wage p emium,
which has been documen ed o many coun ies (see B yson 2014
and Fang and Ha ley 2022). I wages ha e a posi i e impac on
li e sa is ac ion, union membe s will exhibi a highe le el o
sa is ac ion han non-membe s (Lee 2022). Fo Ge many, mos
s udies ind no e idence o a union membe ship wage p emium,
once obse able cha ac e is ics a e accoun ed o (Schmid and
Zimme mann 1991; Fi zenbe ge , E ns , and Haggeney 1999;
Goe ke and Pannenbe g 2004;B yson2014). Somewha in con-
as , Wagne (1991) epo s a posi i e co ela ion be ween wages
and union membe ship o blue-colla wo ke s in Wes Ge many,
and Bonaccol o-Töp e and Schnabel (2023)documen awage
p emium in ecen yea s. In consequence, he wage channel
ei he plays no ole o could gi e ise o a posi i e, hough no
a nega i e, co ela ion be ween ade union membe ship and li e
sa is ac ion in Ge many.
464 B i ish Jou nal o Indus ial Rela ions,2025
Second, some con ibu ions a gue ha union membe s ha e mo e
in ensi e social in e ac ions, g ea e social capi al and a e mo e
in eg a ed in o li e (see, e.g., Radcli 2005). These expec a ions
a e o en based on he assump ion ha unions o ganize mee ings
o hei membe s, os e collabo a ion among colleagues and
help employees o cope wi h wo k- ela ed s ess.4Mo eo e , li e
sa is ac ion is posi i ely associa ed wi h social capi al (Helliwell
and Pu nam 2004; Winkelmann 2009). The abo e easoning
sugges s ha social capi al con ibu es o a posi i e ela ionship
be ween union membe ship and li e sa is ac ion (Fla in, Pacek,
and Radcli 2010; Fla in and Shu eld 2016; Keane, Pacek, and
Radcli 2012; Radcli 2005).5
Thi d, i is o en a gued ha union membe s a e be e p o ec ed
agains job losses (Be glund and Fu åke 2016; F eeman 1980;
Goe ke and Pannenbe g 2011; I le s and Velizio is 2017; Pie se
and McHale 2015) and, he e o e, expe ience a highe le el o job
secu i y han non-membe s. I subjec i ely pe cei ed job secu i y
is a good p oxy o i s ac ual le el and he pe cep ion has a posi i e
impac on li e sa is ac ion, as Cla k, Knabe, and Rä zel (2010)
documen , union membe s can be expec ed o exhibi highe
li e sa is ac ion han non-membe s h ough his channel (Fla in,
Pacek, and Radcli 2010; Fla in and Shu eld 2016; Keane, Pacek,
and Radcli 2012; Radcli 2005). The e idence o Canada and
he Uni ed S a es is in con lic wi h he assump ion ha pe cei ed
job secu i y o union membe s is highe han ha o compa able
non-membe s (B ochu and Zhou 2009;B ochuandMo in2012).
In he Uni ed Kingdom, he ela ionship a ies ac oss g oups
o wo ke s and depends on enu e (Bende and Sloane 1999).
Mo eo e , union membe s’ sa is ac ion wi h job secu i y, which
is p obably highly co ela ed wi h pe cei ed job secu i y, may be
lowe han ha o non-membe s (Bende and Sloane 1998;B yson
and Whi e 2016; G een and Heywood 2015; Powd ha ee 2011).
Fo Ge many, he e is e idence o a posi i e impac o pe cei ed
job insecu i y on union membe ship (Chadi and Goe ke 2023).
In consequence, he di ec ion o he ela ionship be ween ade
union membe ship and li e sa is ac ion due o job secu i y
conside a ions is di icul o p edic .
Fou h, union membe ship may a ec he employees’ iew o
hei own economic and inancial si ua ion. Such an e ec can
a ise as unions p o ide membe s wi h de ailed in o ma ion abou
economic de elopmen s bo h o he en i e economy and indi id-
ually. Mo eo e , ade unions can u nish job- ela ed in o ma ion,
which allows membe s o be e e alua e he p ospec s o hei
p o essional u u e. To ga ne suppo o hei ac i i ies, ade
unions a e mo e likely o emphasize ad e se aspec s o he
economic and inancial si ua ion (see, e.g., Hamme and A ga
2005; Bo jas 1979; Heywood, Siebe , and Wei 2002; F eeman and
Medo 1984, pp. 139 ). I a mo e scep ical e alua ion o one’s own
economic posi ion has nega i e consequences o li e sa is ac ion,
union membe s can be hypo hesized o exhibi a lowe le el o li e
sa is ac ion han non-membe s.
Finally, a common s a ing poin o many analyses conside ing
he linkage be ween union membe ship and li e sa is ac ion is he
expec a ion ha job sa is ac ion o union membe s exceeds he
espec i e le el o non-membe s. I job and li e sa is ac ion a e
co ela ed posi i ely, li e sa is ac ion o union membe s is likely
o exceed li e sa is ac ion o compa able non-membe s (Fla in,
Pacek, and Radcli 2010; Fla in and Shu eld 2016; Keane, Pacek,
and Radcli 2012).6In he only comp ehensi e s udy o job
sa is ac ion and ade union membe ship o Ge many, Goe ke
and Huang (2022) documen nega i e co ela ions in mos OLS
speci ica ions, which o en become insigni ican in FE models.7
The e o e, he job sa is ac ion channel sugges s a non-posi i e
co ela ion be ween union membe ship and li e sa is ac ion.
We conclude he exposi ion o he channels, which may gi e ise
o an impac o union membe ship on li e sa is ac ion, wi h ou
obse a ions:
Fi s , he channels ou lined abo e a e no mu ually exclusi e
bu a he complemen a y as, o example, highe pay may a ec
li e sa is ac ion di ec ly and also indi ec ly ia job sa is ac ion.
None heless, o analy ical cla i y, we discuss hem sepa a ely.
Second, he enume a ion o po en ial channels is unlikely o be
exhaus i e. Consequen ly, we expec a co ela ion be ween ade
union membe ship and li e sa is ac ion o pe sis e en when we
empi ically accoun o all o he abo e channels.
Thi d, he channels we look a may be based on a causal impac
o union membe ship o indica e selec ion e ec s. A highe wage
may, o example, esul om joining a ade union. Al e na i ely,
hose employees who a e highly mo i a ed and be e paid may
also be mo e inclined o become a union membe . Ou analysis o
he channels ha in luence he ela ionship be ween ade union
membe ship and li e sa is ac ion yields insigh s i espec i e o he
na u e o he linkage.
Fou h, a compa ison o he indings o he a ious channels
can p o ide aluable insigh s: The i s and he second channels,
highe wages and g ea e social capi al, ela e o ac ual ou comes.
In con as , he hi d and ou h channels e e o expec a ions,
namely abou job secu i y and he economic si ua ion. Sys em-
a ic di e ences be ween hese wo g oups o channels can be
in o ma i e abou whe he ade union membe ship ac ually
yields bene i s o p ima ily a ec s he pe cep ion o ou comes.
The ou h and i h channels, conce ns abou he economic
si ua ion and job sa is ac ion, ep esen encompassing measu es
o he po en ial e ec s o union membe ship. Thei analysis
can p o ide in o ma ion abou whe he he dissa is ac ion o
membe s is based on b oade job- ela ed and economic aspec s o
union membe ship, beyond he e ec s on wages and job secu i y.
Finally, channels 2 and 4 ela e o social capi al and he economic
si ua ion and, he e o e, o po en ial consequences o union
membe ship no di ec ly associa ed wi h he job. The indings
o hese ou comes can help o asce ain whe he he analysis
o li e sa is ac ion p o ides insigh s, which ex end beyond hose
ob ained om conside ing job sa is ac ion.
4P e ious Analyses
Radcli (2005) p o ides an ea ly analysis o he linkage be ween
an employee’s ade union membe ship and li e sa is ac ion.
He es ima es a linea model, using da a o 17 coun ies om
he 1990 wa e o he Wo ld Value Su ey (WVS) and inds
a posi i e co ela ion. A numbe o u he s udies also use
he WVS, ocusing on di e en wa es and coun ies. Fla in,
Pacek, and Radcli (2010) documen a posi i e linkage o 14
465
indus ialized coun ies in OLS speci ica ions, pa icula ly o
low-income indi iduals. Cha man and Owen (2014)useala ge
sample co e ing 49 coun ies. In o de ed p obi speci ica ions,
hey ind a posi i e co ela ion be ween union membe ship and
li e sa is ac ion, which hey no longe ob ain o a subsample
o high-income coun ies. Fla in and Shu eld (2016) ocus on
he Uni ed S a es and obse e a posi i e co ela ion in OLS and
O de ed P obi models. Employing da a om he Uni ed S a es
Gallup Daily T acke , A z, Blanch lowe , and B yson (2022)and
Blanch lowe , B yson, and G een (2022)also epo aposi i e
co ela ion o OLS models. Mo eo e , Blanch lowe , B yson, and
G een (2022) documen a quali a i ely compa able ela ionship
o almos 40 Eu opean coun ies, based on he Eu opean Social
Su ey, wi hou p o iding esul s o indi idual coun ies. Guzi
and de Ped aza Ga cía (2015) u ilize a web-based su ey o Spain
and obse e a posi i e co ela ion in an OLS speci ica ion. In he
con ex o a comple ely di e en indus ial ela ions sys em and
employing OLS and FE speci ica ions, Boo h e al. (2022)show
ha u al-u ban mig an wo ke s in China who belong o eal
(and no o so-called pape ) unions exhibi highe happiness han
non-membe s. Finally, using Sou h Ko ean household panel da a,
Lee (2022) inds no co ela ion be ween union membe ship and
li e sa is ac ion in i ms whe e a union is p esen in a co ela ed
andom e ec s panel o de ed p obi model.
In sum, mos p e ious in es iga ions p esen indings consis en
wi h he heo e ical expec a ion o a posi i e impac o union
membe ship on li e sa is ac ion. Howe e , he co ela ions do
no always appea o be obus o a ia ions in he sample o
es ima ion me hod. Mo eo e , mos s udies base hei insigh s on
in e -pe sonal compa isons.8
Fo Ge many, he e is no ho ough s udy o he ela ion be ween
ade union membe ship and li e sa is ac ion. Humpe (2013)
documen s a nega i e (insigni ican ) ela ionship o emales
(males) when analysing gende di e ences in he e ec s o social
pa icipa ion, using he Ge man Gene al Social Su ey (ALL-
BUS). Goe ke and Huang (2022) analyse he ela ionship be ween
ade union membe ship and job sa is ac ion. Employing SOEP
da a, hey ind a nega i e associa ion in OLS models ha can no
longe be obse ed in FE speci ica ions. The au ho s conjec u e
ha indi iduals wi h ime-in a ian unobse able cha ac e is ics
nega i ely associa ed wi h job sa is ac ion may so in o union
membe ship. To sc u inize his hypo hesis, hey also look a
he ela ionship be ween union membe ship and li e sa is ac ion
and epo signi ican ly nega i e co ela ions o OLS and FE
models. The p esen con ibu ion builds on hese ini ial es ima es
by Goe ke and Huang (2022) and ex ends hei indings o
subg oups, e alua es po en ial mechanisms ha b ing abou he
nega i e co ela ion and in es iga es he impac o labou ma ke
ins i u ions, such as collec i e ba gaining and co-de e mina ion.
5 Da a and Me hodology
We use da a om he Ge man Socio-Economic Panel (SOEP,
e sion 36). The SOEP is a ep esen a i e and ich longi udinal
da ase o p i a e households in Ge many (see Goebel e al. 2019
o mo e in o ma ion). I p o ides in o ma ion on indi iduals’
demog aphic and wo k- ela ed cha ac e is ics. Ou s udy ocuses
on employed indi iduals aged be ween 16 and 65. The obse a ion
pe iod anges om 1985 o 2019, he i s and he las yea o
which in o ma ion on union membe ship s a us is a ailable.
5.1 De ini ion o Va iables
The dependen a iable measu es a esponden ’s li e sa is ac ion.
The espec i e ques ion is asked in each wa e and possible
answe s ange om 0 (comple ely dissa is ied) o 10 (comple ely
sa is ied). The main explana o y a iable, union membe ship
s a us, is a dummy a iable ha akes he alue o one i
an indi idual is a membe a he ime o he in e iew and
ze o o he wise. The ques ionnai e con ains he co esponding
ques ion a i egula in e als, namely in 1985 and 1989 o Wes
Ge many, in 1990 o Eas e n Ge many, and in 1993, 1998, 2001,
2003, 2007, 2011, 2015 and 2019 o he en i e coun y, which was
euni ed in Oc obe 1990.
We sepa a e u he independen a iables in o h ee b oad
ca ego ies. The i s includes demog aphic and labou ma ke
a iables. The o me include age (le el & quad a ic e ms), being
emale, being ma ied, yea s o educa ion (le el & quad a ic
e ms) and he numbe o child en li ing in he household.
We di e en ia e labou ma ke a iables in o hose which a e
ela i ely exogenous om an indi idual’s pe spec i e and a
second g oup, o which his is mo e di icul o a gue. The
i s g oup includes dummy a iables aking he alue o one
i a esponden wo ks in he public sec o , is a ci il se an ,
a blue-colla wo ke , and 16 dummy a iables indica ing he
indus y a ilia ion (a he 2-digi NACE le el). The second se
o labou ma ke - ela ed a iables inco po a es in o ma ion on
ac ual weekly wo king hou s, enu e (le el & quad a ic e ms),
and a dummy a iable indica ing ha he esponden has joined
he i m wi hin he las yea .
The second ca ego y o a iables is u ilized o analyse he
channels ou lined in Sec ion 3.2. We use he na u al loga i hm
o he g oss labou income in he p e ious mon h o compu e
he wage ma k-up. I includes o e ime emune a ion, bu does
no inco po a e one- ime paymen s, such as aca ion pay o
bonuses. To de i e a measu e o social connec edness, we ollow
Winkelmann (2009) and Baue nschus e , Falck, and Woessmann
(2014), and ocus on he ne wo king aspec o social capi al. In
pa icula , we u ilize in o ma ion on leisu e- ela ed ac i i ies and
he pa icipa ion in o ganized e en s. To do so, we employ a ange
o ques ions abou how indi iduals spend hei leisu e ime.9The
answe s o each ques ion ange om 1 ‘a leas once pe week’
o4‘ne e ’. We ecode hem such ha he mo e one pe o ms
an ac i i y, he highe he sco e is. Mo eo e , we a e age he
answe s o e all esponses in each yea , such ha ou indica o
o social capi al can ange om 1 o 4.10 We de i e indica o s
o an indi idual’s pe cep ions o job secu i y and he economic
si ua ion om he ollowing ques ions: ‘How conce ned a e you
abou he ollowing issues?’. The lis o opics includes ‘You job
secu i y’and‘You own economic si ua ion’. The possible answe s
a e 1 ‘ e y conce ned’, 2 ‘somewha conce ned’and3‘no conce ned
a all’, and highe alues indica e ewe conce ns. Finally, job
sa is ac ion is measu ed on an 11-poin scale anging om 0
(comple ely dissa is ied) o 10 (comple ely sa is ied).
466 B i ish Jou nal o Indus ial Rela ions,2025
In a subse o SOEP wa es, he e is in o ma ion abou collec i e
ba gaining co e age and he exis ence o a wo ks o pe son-
nel council in he esponden ’s es ablishmen . F om hese, we
cons uc ou hi d ca ego y o independen a iables. Fi s ,
we use he ques ion ‘A e you paid acco ding o a collec i ely
ag eed wage ag eemen ?’. The SOEP con ains his enqui y and
in o ma ion abou union membe ship simul aneously in 2015 and
2019. Second, he in o ma ion conce ning co-de e mina ion a he
es ablishmen le el is de i ed om: ‘Does a wo ks o a pe sonnel
council exis a you place o wo k?’. This ques ion and he one on
union membe ship a e asked con empo aneously in 2001, 2011
and 2019.
In all speci ica ions, we con ol o ede al s a e and su ey
yea ixed e ec s. We exclude all obse a ions wi h missing
alues. Ou main es ima ing sample consis s o 88,739 obse a-
ions om 39,218 indi iduals. O hese, 59,537 obse a ions s em
om 29,162 indi iduals who ne e belonged o a ade union,
while 8430 obse a ions ela e o 4093 indi iduals who we e
a membe o a ade union in all su ey wa es in which we
obse e hem. Mo eo e , 5963 indi iduals (20,772 obse a ions)
epo ed changes in he membe ship s a us. In pa icula , 1352
indi iduals joined, 2990 le , and 1621 epo ed bo h en y and
exi .
Since he in o ma ion needed o sc u inize he a ious channels
is no a ailable in all yea s and is no p o ided by all esponden s,
he espec i e es ima ions a e based on 73,151 obse a ions ( om
35,920 indi iduals). The sample inco po a ing in o ma ion abou
collec i e ba gaining consis s o 22,678 obse a ions ( om 18,117
indi iduals), while he co-de e mina ion sample includes 27,415
obse a ions ( om 22,024 indi iduals).
5.2 Model
We ini ially epo OLS es ima es. In o de o con ol o ime-
in a ian obse able and unobse able ac o s ha migh be
co ela ed wi h union membe ship and li e sa is ac ion, we also
employ FE eg essions. We es ima e he ollowing model:
𝐿𝑆𝑖𝑡 =𝛽0+𝛽1𝑇𝑈𝑖𝑡 +𝜷𝟐𝑿𝒊𝒕 +𝜆𝑖+𝜆𝑡+𝜀𝑖𝑡,(1)
whe e 𝐿𝑆𝑖𝑡 is li e sa is ac ion o indi idual 𝑖in e iewed in yea
𝑡and 𝑇𝑈𝑖𝑡 indica es he union membe s a us. 𝑿𝒊𝒕 is a ec o o
con ol a iables, including ede al s a e ixed e ec s. 𝜆𝑖indica es
indi idual ixed e ec s (omi ed in OLS speci ica ions), while 𝜆𝑡
ep esen s a se o yea dummy a iables. 𝜀𝑖𝑡 is he e o e m. We
clus e s anda d e o s a he indi idual le el.
We ocus on linea models since hey a e mo e s aigh o wa d o
in e p e . Using SOEP da a, Fe e -i-Ca bonell and F ij e s (2004)
show ha OLS models yield esul s equi alen o hose o non-
linea models. To subs an ia e his equi alence o ou analysis,
we p o ide esul s om an O de ed P obi model as a obus ness
check o he main analysis.
6Resul s
6.1 Desc ip i e E idence
Table 1 epo s he summa y s a is ics o he main a iables.
In ou main es ima ing sample, 21.37% o all obse a ions a e
union membe s. The e is a subs an ial gende gap in union
membe ship. While 43.54% o he obse a ions a e emale, among
union membe s, his sha e amoun s o 32.91%. Union membe s
a e, on a e age, olde han non-membe s, ha e longe enu e, a e
mo e likely o wo k in he public sec o , in blue-colla occupa ions
and la ge companies. Mos impo an ly, om ou pe spec i e,
union membe s exhibi a le el o li e sa is ac ion ha is a ound
0.15 poin s lowe han he le el epo ed by non-membe s.11
When we look a he dis ibu ion o eplies o he li e sa is ac ion
ques ion, Figu e 1indica es ha he mos equen answe s a e
hose o he le and igh o he mean alue. Mo eo e , union
membe s a e less likely o s a e ha hey a e almos comple ely
sa is ied wi h hei li e (pa icula ly esponses 8 and 9), whe eas
hey a e mo e likely o p o ide in e media e answe s (especially
esponses 5 and 6).
6.2 Main Findings
Table 2depic s es ima ion esul s om OLS models (Panel (A))
and FE models (Panel (B)) o he main es ima ing sample.
Column (1) shows a simple co ela ion be ween ade union
membe ship and li e sa is ac ion, including yea and ede al s a e
ixed e ec s as co a ia es. The es ima ed coe icien s a e nega i e
and s a is ically signi ican . Adding demog aphic con ols (in
column (2)) and in o ma ion on labou ma ke cha ac e is ics
(in column (3)) does no quali a i ely change he es ima es.12
The speci ica ion in column (3) con ains bo h g oups o labou
ma ke cha ac e is ics, he ela i ely exogenous ones and hose
which can be a gued o be a ec ed by union membe ship. I we
only include he o me , he es ima ed coe icien on he union
membe ship dummy (no depic ed) is no s a is ically di e en
om he one depic ed in column (3) o Table 2. Hence, ou
indings hold e en i bad con ols exis ed.
The esul s show ha li e sa is ac ion o union membe s is
subs an ially lowe han ha o non-membe s. The es ima ed
e ec s a e quan i a i ely sizeable and, ocusing on he FE model,
oughly equi alen o mo ing om a medium o la ge i m
o one wi h less han 20 employees (see Table A6 in he
Suppo ing Appendix, which con ains he ull se o esul s o
he speci ica ion in column (3)). The ea u e ha he es ima ed
coe icien in he FE model is somewha smalle in magni ude
han in he OLS speci ica ion is compa ible wi h he iew ha
indi iduals who gene ally exp ess lowe le els o sa is ac ion so
in o union membe ship. Howe e , he signi ican co ela ion in
FE speci ica ions cla i ies ha so ing canno en i ely explain o
he obse ed nega i e ela ionship.
Table 1indica es ha a ela i ely la ge majo i y o union mem-
be s in Ge many is male (see also OECD and AIAS 2021). In
consequence, ade unions may be e ep esen he in e es s o
male membe s, such ha he li e sa is ac ion e ec o union
467
TABLE 1 Summa y s a is ics o he main es ima ion sample.
(1) (2) (3) (4) (5) (6) (7)
All obse a ions Membe s Non-membe s Di e ence in he mean
mean s.d. min max mean mean (col. 5 −col. 6)
li e sa is ac ion 7.2035 1.6670 0 10 7.0870 7.2351 −0.1481***
TU membe 0.2137 0.4099 0 1 1 0
age 41.1792 11.7733 16 65 42.8811 40.7166 2.1645***
emale 0.4354 0.4958 0 1 0.3291 0.4643 −0.1352***
ma ied 0.5739 0.4945 0 1 0.6336 0.5577 0.0759***
educa ion 12.1561 2.5946 7 18 11.7898 12.2556 −0.4658***
child en in HH 0.5767 0.8874 0 10 0.5660 0.5796 −0.0136
hou s wo ked 38.9923 12.1470 0.5000 80 40.1111 38.6882 1.4229***
public sec o 0.2623 0.4399 0 1 0.3568 0.2366 0.1203***
ci il se an 0.0709 0.2566 0 1 0.1164 0.0585 0.0578***
blue-colla wo ke 0.3017 0.4590 0 1 0.4354 0.2653 0.1701***
enu e 10.6454 10.1204 0 50.9170 14.5978 9.5711 5.0266***
new job 0.1226 0.3280 0 1 0.0650 0.1383 −0.0733***
i m size
sel -employed o w/o employees 0.0215 0.1449 0 1 0.0025 0.0266 −0.0242***
<20 0.2378 0.4258 0 1 0.0706 0.2833 −0.2126***
[20, 200) 0.2683 0.4431 0 1 0.2279 0.2793 −0.0514***
[200, 2000) 0.2213 0.4151 0 1 0.2817 0.2049 0.0769***
≥2000 0.2511 0.4337 0 1 0.4173 0.2059 0.2114***
obse a ions 88,739 18,077 70,662
indi iduals 39,218 9353 33,763
No e: This able shows summa y s a is ics o he main es ima ion sample using indi idual-le el weigh ing ac o s. Obse a ion pe iod is 1985–2019. In columns
(1)–(4), we show s a is ics o he whole sample, in column (5) o ade union membe s, and in column (6) o non-membe s. Column (7) shows he di e ence in
means be ween columns (5) and (6). *** 𝑝<0.01.
FIGURE 1 Dis ibu ion o li e sa is ac ion esponses o union membe s and non-membe s. [Colou igu e can be iewed a wileyonlineli-
b a y.com]
468 B i ish Jou nal o Indus ial Rela ions,2025
TABLE 2 Co ela ion be ween ade union membe ship and li e
sa is ac ion.
(1) (2) (3)
Panel (A): OLS es ima es
TU membe −0.0863*** −0.0489*** −0.0966***
(0.0188) (0.0189) (0.0195)
Panel (B): FE es ima es
TU membe −0.0579** −0.0578** −0.0636**
(0.0252) (0.0251) (0.0252)
con ol a iables
yea /s a e ixed e ec s X X X
demog aphic con ols X X
labou ma ke con ols X
obse a ions 88,739
indi iduals 39,218
No e: This able shows he ela ionship be ween ade union membe ship
and li e sa is ac ion. The obse a ion pe iod is 1985–2019. Demog aphic
cha ac e is ics include age (le el & quad a ic e ms), being emale, being
ma ied, yea s o schooling (le el & quad a ic e ms) and he numbe o
child en in he household. As labou ma ke ac o s, we include ela i ely
exogenous ac o s like wo king in he public sec o , being a ci il se an , being
a blue-colla wo ke , and dummy a iables o i m size and indus ial sec o s,
as well as less exogenous ac o s, such as ac ual wo k hou s pe week, yea s
o enu e (le el & quad a ic e ms) and ha ing a new job ( enu e sho e
han 1 yea ). Fede al s a e ixed e ec s and yea ixed e ec s a e accoun ed
o in all speci ica ions. S anda d e o s (clus e ed a he indi idual le el) in
pa en heses: *** 𝑝<0.01;**𝑝<0.05.
membe ship could be gende -speci ic.13 Panel (A) o Table 3
documen s a signi ican and nega i e co ela ion o abou he
same magni ude o males and emales in OLS models (see
columns (1) and (3)). Accoun ing o indi idual ixed e ec s
does no quali a i ely al e he indings o males, while he
es ima ed nega i e coe icien o emales becomes s a is ically
insigni ican (see columns (2) and (4)). The e o e, ou indings
do no suppo he conjec u e ha unions ac p ima ily on behal
o hei male membe ship.
Recen s udies show ha he associa ion be ween union mem-
be ship and job sa is ac ion a ies ac oss ime and bi h coho s
(Blanch lowe and B yson 2022; Blanch lowe , B yson, and G een
2022; Goe ke and Huang 2022). Mo eo e , he ela ionship wi h
li e sa is ac ion u ns posi i e in he Uni ed S a es and he EU
a e he G ea Recession (Blanch lowe , B yson, and G een 2022).
To analyse whe he a simila ea u e is obse able o Ge many,
we c ea e wo sub-samples o abou equal size; one consis ing o
ea ly obse a ions su eyed in and be o e 2003, and a second one
wi h esponses collec ed in he second hal o ou obse a ion
pe iod. Bo h OLS and FE es ima es a e s a is ically signi ican and
nega i e o indi iduals su eyed in o be o e 2003 (see columns
(1) and (2) o Panel (B) in Table 3). When looking a he employees
su eyed in la e yea s (see columns (3) and (4)), he OLS es ima e
is nega i e and ma ginally signi ican , while he magni ude o he
es ima ed coe icien is subs an ially smalle han in column (1).
The FE es ima e is s a is ically insigni ican .14
Fu he mo e, we ha e spli he sample acco ding o bi h yea
and age. To asce ain whe he he ela ionship be ween union
membe ship and li e sa is ac ion a ies ac oss bi h coho s as,
o example, Blanch lowe , B yson, and G een (2022)documen
o he linkage be ween membe ship and job sa is ac ion in he
Uni ed S a es, we conside sepa a ely indi iduals bo n in o
be o e he median bi h yea 1964 and a e wa ds. To look a he
possibili y o age e ec s, we spli he sample in o obse a ions
aged 41 o younge a he ime o he in e iew and a second
g oup aged 42 o olde . Using hese samples, we obse e ha bo h
OLS and FE es ima es a e s a is ically signi ican and nega i e
o he olde coho and insigni ican o he younge . All ou
es ima ed coe icien s o he di e en age g oups a e nega i e,
wi h he one esul ing om he FE speci ica ion o he olde
indi iduals being s a is ically insigni ican (see Table A7 in he
Suppo ing Appendix).
The indings ha he nega i e ela ionships be ween union
membe ship and li e sa is ac ion become weake o s a is ically
insigni ican a e 2003 and o indi iduals bo n la e han
1964, while he e a e no clea ly iden i iable pa e ns ac oss age
g oups, sugges he absence o s ong changes o e ime o age
coho s. We may ins ead in e p e he esul s ou lined abo e in
conjunc ion wi h he ea u e o a declining union densi y o e
ime. This all could imply, in con as o he hypo hesis usually
pu o wa d when in es iga ing he exi - oice pe spec i e, ha
only hose indi iduals emain in a ade union, o join i , whose
bene i s om membe ship a e pa icula ly la ge as he cos s o
membe ship ha e emained basically unchanged. Thei dissa -
is ac ion is likely o be smalle han o indi iduals who bene i
o a lesse ex en om membe ship. F om his pe spec i e, he
nega i e ela ionship be ween union membe ship and li e sa is-
ac ion has become weake o e he yea s because he emaining
membe s pe cei e he bene i s o membe ship o be la ge han
in ea lie pe iods. Howe e , in con as o o he coun ies, we
ob ain no e idence o Ge many ha he ela ionship be ween
union membe ship and li e sa is ac ion has u ned posi i e since
he G ea Recession o in ecen yea s (A z, Blanch lowe , and
B yson 2022; Blanch lowe , B yson, and G een 2022).
6.3 Po en ial Channels
In each o he subsequen subsec ions, we p oceed as ollows:
Fi s , we documen he ela ionship be ween union membe ship
and he a iable unde sc u iny, bo h desc ip i ely and based
on OLS and FE models. This s ep helps o es ablish whe he
he po en ial channel exis s. We also e-es ima e ou baseline
speci ica ion wi h li e sa is ac ion as he dependen a iable o
he smalle sample ha we use o analyse he a ious channels.
This cla i ies whe he he change in he es ima ing sample has
an impac . Second, we include he espec i e a iable as an
addi ional co a ia e in o he baseline speci ica ion. By compa ing
he es ima ed coe icien s o he union membe ship dummy wi h
and wi hou he addi ional co a ia e, we can asce ain whe he
he ela ionship be ween union membe ship and li e sa is ac ion
ope a es ia he channel conside ed. Finally, we discuss he
insigh s om combining he esul s o al e na i e combina-
ions o explana ions and we conside all po en ial channels a
once.15
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Suppo ing In o ma ion
Addi ional suppo ing in o ma ion can be ound online in he Suppo ing
In o ma ion sec ion.
477
