[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp13747.html
   My bibliography  Save this paper

Do Public Subsidies of Union Membership Increase Union Membership Rates?

Author

Listed:
  • Barth, Erling

    (Institute for Social Research, Oslo)

  • Bryson, Alex

    (University College London)

  • Dale-Olsen, Harald

    (Institute for Social Research, Oslo)

Abstract
Using administrative 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 union good increases union take-up, while increased union fees reduce the demand for membership. The price elasticity of demand for union membership is - 7 percent in 2012 (the last year for which we have data) though effects are heterogeneous across types of worker. 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. Since membership fees are a substantial part of unions' total revenues the findings have important implications for unions' viability. They are also significant because union bargaining strength, which is often proxied by union density, affects a range of social, economic and political outcomes.

Suggested Citation

  • Barth, Erling & Bryson, Alex & Dale-Olsen, Harald, 2020. "Do Public Subsidies of Union Membership Increase Union Membership Rates?," IZA Discussion Papers 13747, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13747
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp13747.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:dgr:uvatin:20070060 is not listed on IDEAS
    2. W. Craig Riddell, 1993. "Unionization in Canada and the United States: A Tale of Two Countries," NBER Chapters, in: Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States, pages 109-148, National Bureau of Economic Research, Inc.
    3. Metcalf, David & Stewart, Mark, 1992. "Closed Shops and Relative Pay: Institutional Arrangements or High Density?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(4), pages 503-516, November.
    4. Erling Barth & Alex Bryson & Harald Dale-Olsen, 2017. "Union Density, Productivity, and Wages," DoQSS Working Papers 17-11, Quantitative Social Science - UCL Social Research Institute, University College London.
    5. John-Paul Ferguson, 2008. "The Eyes of the Needles: A Sequential Model of Union Organizing Drives, 1999–2004," ILR Review, Cornell University, ILR School, vol. 62(1), pages 3-21, October.
    6. 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, March.
    7. Chris (hristos) Doucouliagos & Richard B Freeman & Patrice Laroche, 2017. "The economic of trade unions," Post-Print hal-02976776, HAL.
    8. John DiNardo & David S. Lee, 2004. "Economic Impacts of New Unionization on Private Sector Employers: 1984–2001," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(4), pages 1383-1441.
    9. John T. Addison & Alex Bryson & Paulino Teixeira & André Pahnke, 2011. "Slip Sliding Away: Further Union Decline In Germany And Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(4), pages 490-518, September.
    10. Forth, John & Bryson, Alex, 2018. "State Substitution for the Trade Union Good: The Case of Paid Holiday Entitlements," IZA Discussion Papers 11615, Institute of Labor Economics (IZA).
    11. Rafael Gomez & Morley Gunderson & Noah Meltz, 2002. "Comparing Youth and Adult Desire for Unionization in Canada," British Journal of Industrial Relations, London School of Economics, vol. 40(3), pages 542-519, September.
    12. John T. Addison, 2009. "The Economics of Codetermination," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-10424-2, October.
    13. David S. Lee & Alexandre Mas, 2012. "Long-Run Impacts of Unions on Firms: New Evidence from Financial Markets, 1961--1999," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(1), pages 333-378.
    14. John M. Abowd & Henry S. Farber, 1982. "Job Queues and the Union Status of Workers," ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
    15. Christian M. Dahl & Daniel le Maire & Jakob R. Munch, 2013. "Wage Dispersion and Decentralization of Wage Bargaining," Journal of Labor Economics, University of Chicago Press, vol. 31(3), pages 501-533.
    16. Alex Bryson & Rafael Gomez & Morley Gunderson & Noah Meltz, 2005. "Youth-Adult Differences in the Demand for Unionization: Are American, British, and Canadian Workers All That Different?," Journal of Labor Research, Transaction Publishers, vol. 26(1), pages 155-167, January.
    17. Bryson, Alex & Dale-Olsen, Harald & Nergaard, Kristine, 2016. "Gender Differences in the Union Wage Premium? A Comparative Case Study," IZA Discussion Papers 10435, Institute of Labor Economics (IZA).
    18. Pemberton, James, 1988. "A 'Managerial' Model of the Trade Union," Economic Journal, Royal Economic Society, vol. 98(392), pages 755-771, September.
    19. Jonas Pendzialek & Dusan Simic & Stephanie Stock, 2016. "Differences in price elasticities of demand for health insurance: a systematic review," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(1), pages 5-21, January.
    20. Alison L. Booth, 1985. "The Free Rider Problem and a Social Custom Model of Trade Union Membership," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(1), pages 253-261.
    21. Card, David & Freeman, Richard B. (ed.), 1993. "Small Differences That Matter," National Bureau of Economic Research Books, University of Chicago Press, number 9780226092836, Febrero.
    22. John T. Addison & Claus Schnabel (ed.), 2003. "International Handbook of Trade Unions," Books, Edward Elgar Publishing, number 2705.
    23. Richard Murphy, 2020. "Why Unions Survive: Understanding How Unions Overcome the Free-Rider Problem," Journal of Labor Economics, University of Chicago Press, vol. 38(4), pages 1141-1188.
    24. John H. Pencavel, 2004. "The Surprising Retreat of Union Britain," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 181-232, National Bureau of Economic Research, Inc.
    25. John DiNardo & David S. Lee, 2004. "Economic Impacts of Unionization on Private Sector Employers: 1984-2001," NBER Working Papers 10598, National Bureau of Economic Research, Inc.
    26. Bryson, Alex & Gomez, Rafael & Willman, Paul, 2010. "Online social networking and trade union membership: what the Facebook phenomenon truly means for labor organizers," LSE Research Online Documents on Economics 27771, London School of Economics and Political Science, LSE Library.
    27. Orley Ashenfelter & John H. Pencavel, 1969. "American Trade Union Growth: 1900–1960," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 83(3), pages 434-448.
    28. Eva Gutiérrez‐i‐Puigarnau & Jos N. Van Ommeren, 2011. "Welfare Effects Of Distortionary Fringe Benefits Taxation: The Case Of Employer‐Provided Cars," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(4), pages 1105-1122, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laszlo Goerke, 2020. "Unions and Workers' Well-being," IAAEU Discussion Papers 202008, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Barth, Erling & Bryson, Alex & Dale-Olsen, Harald, 2017. "Union Density, Productivity and Wages," IZA Discussion Papers 11111, Institute of Labor Economics (IZA).
    3. Blanchflower, David G., 2006. "A Cross-Country Study of Union Membership," IZA Discussion Papers 2016, Institute of Labor Economics (IZA).
    4. Alex Bryson & Richard Freeman & Rafael Gomez & Paul Willman, 2017. "The Twin Track Model of Employee Voice: An Anglo-American Perspective on Union Decline and the Rise of Alternative Forms of Voice," DoQSS Working Papers 17-13, Quantitative Social Science - UCL Social Research Institute, University College London.
    5. Laroche, Patrice, 2020. "Unions, Collective Bargaining and Firm Performance," GLO Discussion Paper Series 728, Global Labor Organization (GLO).
    6. David G. Blanchflower & Alex Bryson, 2022. "Union Membership Peaks in Midlife," British Journal of Industrial Relations, London School of Economics, vol. 60(1), pages 124-151, March.
    7. Emin Dinlersoz & Jeremy Greenwood & Henry Hyatt, 2017. "What Businesses Attract Unions? Unionization over the Life Cycle of U.S. Establishments," ILR Review, Cornell University, ILR School, vol. 70(3), pages 733-766, May.
    8. Ghaly, Mohamed & Kostakis, Alexandros & Stathopoulos, Konstantinos, 2021. "The (non-) effect of labor unionization on firm risk: Evidence from the options market," Journal of Corporate Finance, Elsevier, vol. 66(C).
    9. Simon Jäger & Shakked Noy & Benjamin Schoefer, 2022. "The German Model of Industrial Relations: Balancing Flexibility and Collective Action," Journal of Economic Perspectives, American Economic Association, vol. 36(4), pages 53-80, Fall.
    10. Dinlersoz, Emin & Greenwood, Jeremy & Hyatt, Henry R., 2014. "Who Do Unions Target? Unionization over the Life-Cycle of U.S. Businesses," IZA Discussion Papers 8416, Institute of Labor Economics (IZA).
    11. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    12. Bernd Fitzenberger & Karsten Kohn & Alexander C. Lembcke, 2013. "Union Density and Varieties of Coverage: The Anatomy of Union Wage Effects in Germany," ILR Review, Cornell University, ILR School, vol. 66(1), pages 169-197, January.
    13. Henry S Farber & Daniel Herbst & Ilyana Kuziemko & Suresh Naidu, 2021. "Unions and Inequality over the Twentieth Century: New Evidence from Survey Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(3), pages 1325-1385.
    14. Matthew Knepper, 2020. "From the Fringe to the Fore: Labor Unions and Employee Compensation," The Review of Economics and Statistics, MIT Press, vol. 102(1), pages 98-112, March.
    15. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    16. Olivier Guillot & Magali Jaoul-Grammare & Isabelle Terraz, 2019. "Union Membership in France: An Empirical Study," Working Papers of BETA 2019-04, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    17. Dinlersoz, Emin & Greenwood, Jeremy & Hyatt, Henry R., 2014. "Who Do Unions Target? Unionization over the Life-Cycle of U.S. Businesses," IZA Discussion Papers 8416, Institute of Labor Economics (IZA).
    18. Sojourner, Aaron & Yang, Jooyoung, 2015. "Effects of Unionization on Workplace-Safety Enforcement: Regression-Discontinuity Evidence," IZA Discussion Papers 9610, Institute of Labor Economics (IZA).
    19. Schnabel, Claus, 2012. "Union Membership and Density: Some (Not So) Stylized Facts and Challenges," IZA Discussion Papers 6792, Institute of Labor Economics (IZA).
    20. Barry T. Hirsch, 2008. "Sluggish Institutions in a Dynamic World: Can Unions and Industrial Competition Coexist?," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 153-176, Winter.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp13747. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.