Arbeitspapier

Is there a union wage premium in Germany and which workers benefit most?

Using representative data from the German Socio-Economic Panel (SOEP), this paper finds a statistically significant union wage premium in Germany of almost three percent which is not simply a collective bargaining premium. Given that the union membership fee is typically about one percent of workers' gross wages, this finding suggests that it pays off to be a union member. Our results show that the wage premium differs substantially between various occupations and educational groups, but not between men and women. We do not find that union wage premia are higher for those occupations and workers which constitute the core of union membership. Rather, unions seem to care about disadvantaged workers and pursue a wider social agenda.

Language
Englisch

Bibliographic citation
Series: FAU Discussion Papers in Economics ; No. 02/2023

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Labor-Management Relations; Industrial Jurisprudence
Subject
union wage premium
collective bargaining
union membership
Germany

Event
Geistige Schöpfung
(who)
Bonaccolto-Töpfer, Marina
Schnabel, Claus
Event
Veröffentlichung
(who)
Friedrich-Alexander-Universität Erlangen-Nürnberg, Institute for Economics
(where)
Nürnberg
(when)
2023

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bonaccolto-Töpfer, Marina
  • Schnabel, Claus
  • Friedrich-Alexander-Universität Erlangen-Nürnberg, Institute for Economics

Time of origin

  • 2023

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