Trade Union Membership and Bonus Payments: German Survey Evidence

Marco Clemens () and Laszlo Goerke
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Marco Clemens: Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University

No 202503, IAAEU Discussion Papers from Institute of Labour Law and Industrial Relations in the European Union (IAAEU)

Abstract: This study provides the first comprehensive investigation of the relationship between trade union membership and non-performance-oriented bonuses. We expect a positive impact of union membership because members benefit from special entitlements, increased bargaining power and informational advantages. Using data from the German Socio-economic panel (GSOEP), we observe that union members are more likely to receive at least one bonus payment per year, a higher number of bonuses, and a higher amount than comparable non-members. We also observe the positive union membership effect for employees covered by collective bargaining or co-determination via works councils. Employing a novel instrumental variable, we find evidence of a positive effect of union membership on the number and level of bonus payments. Furthermore, higher bonuses do not go along with wage decreases.

Keywords: bonus payments; collective bargaining; GSOEP; trade union membership (search for similar items in EconPapers)
JEL-codes: J31 J33 J51 J52 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2025-05
New Economics Papers: this item is included in nep-eur and nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:iaa:dpaper:202503

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