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Author Goerke, Laszlo ♦ Pannenberg, Markus
Source EconStor
Content type Text
Publisher Institute for the Study of Labor (IZA)
File Format PDF
Language English
Subject Domain (in DDC) Social sciences ♦ Economics
Subject Keyword Employment ♦ membership ♦ risk aversion ♦ trade union ♦ Gewerkschaftlicher Organisationsgrad ♦ Gewerkschaft ♦ Mitgliedschaft ♦ Risikoaversion ♦ Lohnverhandlungen ♦ Deutschland ♦ Trade Unions: Objectives, Structure, and Effects
Abstract In an open-shop model of trade union membership with heterogeneity in risk attitudes, a worker's relative risk aversion can affect the decision to join a trade union. Furthermore, a shift in risk attitudes can alter collective bargaining outcomes. Using German panel data (GSOEP) and three novel direct measures of individual risk aversion, we find evidence of a significantly positive relationship between risk aversion and the likelihood of union membership. Additionally, we observe a negative correlation between bargained wages in aggregate and average risk preferences of union members. Our results suggest that an overall increase in risk aversion contributes to wage moderation and promotes employment.
Part of series IZA Discussion Papers x3351
Learning Resource Type Article
Publisher Date 2008-01-01
Publisher Place Bonn
Rights Holder http://www.econstor.eu/dspace/Nutzungsbedingungen