Uncovered workers in plants covered by collective bargaining: Who are they and how do they fare?

Boris Hirsch (), Philipp Lentge () and Claus Schnabel
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Boris Hirsch: Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
Philipp Lentge: Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre

No 408, Working Paper Series in Economics from University of Lüneburg, Institute of Economics

Abstract: In Germany, employers used to pay union members and non-members in a plant the same union wage in order to prevent workers from joining unions. Using recent administrative data, we investigate which workers in firms covered by collective bargaining agreements still individually benefit from these union agreements, which workers are not covered anymore, and what this means for their wages. We show that about 9 percent of workers in plants with collective agreements do not enjoy individual coverage (and thus the union wage) anymore. Econometric analyses with unconditional quantile regressions and firm-fixed-effects estimations demonstrate that not being individually covered by a collective agreement has serious wage implications for most workers. Low-wage non-union workers and those at low hierarchy levels particularly suffer since employers abstain from extending union wages to them in order to pay lower wages. This jeopardizes unions’ goal of protecting all disadvantaged workers.

Keywords: collective bargaining; union wage; uncovered workers; Germany (search for similar items in EconPapers)
JEL-codes: J31 J53 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2022-02
New Economics Papers: this item is included in nep-ban, nep-eur, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Related works:
Journal Article: Uncovered workers in plants covered by collective bargaining: Who are they and how do they fare? (2022)
Working Paper: Uncovered Workers in Plants Covered by Collective Bargaining: Who Are They and How Do They Fare? (2022)
Working Paper: Uncovered workers in plants covered by collective bargaining: Who are they and how do they fare? (2022)
Working Paper: Uncovered workers in plants covered by collective bargaining: Who are they and how do they fare? (2022)
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