Determinants of Union Membership: A Review

The recent drastic decline in trade union membership levels in most Western countries has led to renewed interest in the factors which influence the decision of employees to join unions. This paper discusses the strengths and weaknesses of the three main approaches: structural determinism, individual-level analysis, and conceptual models of trade union joining behaviour. Structural determinism is discussed in the context of the Bainian model and its various extensions. In contrast, the diverse findings in the field of individual-union joining behaviour is assessed by drawing on a comprehensive table comprising all variables examined in this area. The first two sections focus exclusively on trade union joining behaviour as the independent variable whereas the third part of the paper uses an individuals' voting behaviour in the USA. This focus was necessary due to the lack of causal models using union joining behaviour as their dependent variable. The author selects two of the most advanced models for a detailed analysis, and relates the findings to the preceding sections. It is the objective of the paper to critically evaluate the three approaches and their contributions towards understanding this complex field of research.     

Union Membership and the Union Wage Gap in the UK

We consider the choice of union membership in the UK and its effect on the union/non‐union wage differential allowing for the endogeneity of the union choice. We include identifying variables not previously used and find that correcting for selectivity is important and has a large impact on the estimated differential. Moreover, union choice is itself affected by the wage gap.     

‘Investment’ in Union Membership: A Managerial Approach

This paper concerns wage formation in a unionized economy when union membership is endogenous and determined by employment. A union is run by a leadership which has as an objective to strengthen the union’s position in the labour market. This is achieved by building up membership. Among the results, it is found that since membership is determined by employment, the inclusion of the leadership’s preferences into a union’s objective function produces lower real wages than a static version would predict. It is also shown that an increase in the union’s rate of time preference increases the natural rate of unemployment, while an increase in the speed at which workers enter/leave a union has an opposite effect.     

Wage Dynamics and Unemployment in Germany: Evidence from Regional Panel Data

A stylized fact of empirical work on the relationship of wages and unemployment using macro data for European countries is a combination of strong autocorrelation of wages and a significant negative long‐run relationship of wages and unemployment. However, this view is challenged by empirical work relying on regional or micro data providing evidence for an instantaneous adjustment of wages to variations in the level of unemployment. Exploiting regional panel data for West Germany, we show that, at least for the years 1990–94, regional and macro data mirror the same phenomenon. Our results are broadly consistent with the observed increase in the natural rate of unemployment in Germany.     

A Study in Studying Corporate Boards Over Time: Looking Backwards to Move Forwards

This paper is based on data collected in the late 1980s and again in the late 1990s from interviews with chairmen, chief executives and board members in 12 large UK organizations such as Hanson, Marks & Spencer, Prudential and Glynwed. Although the primary focus is on theorizing and theory over time, this also leads us to question matters of method and methodology. The first section considers some of the study design issues raised by conducting this sequel study, noting that it was not possible to ‘repeat’ the first study for a number of important reasons. The second section observes that while our earlier analytical metaphor of organizing as explaining endures, the nature of the explanations has changed: ‘strategic focus’, ‘shareholder value’ and ‘corporate governance’ are now the contemporary watchwords although were unheard of in our interviews a decade earlier. The following section develops on this, concluding that in making judgements about future shareholder value, the primary evidence is drawn from events already past and interpreted through current explanations. We conclude on the importance of time to our theorizing, where there appears to be a confluence between time and person, in part, created and in part, supported by particular (judgements of) explanations of organizing prevailing at that time.     

The Union Effect on Wages in Chile: A Two‐Stage Approach Using Panel Data

We estimate the union effect on wages in Chile to be between 18 and 24 per cent. We follow a two‐stage procedure that allows us to correct the endogeneity of union status and to separate true from spurious dependence, by exploiting the union history of individuals using panel data. We find evidence of comparative‐advantage sorting in union status, strong true state dependence and a re‐distributional effect of union membership (i.e. wage gains from unionization are larger for lower‐wage earners).     

Evaluating USAF Vehicle Maintenance Productivity Over Time: An Application of Data Envelopment Analysis

In response to increasing costs and reductions in manpower, the Tactical Air Command (TAC) of the USAF experimented with a specialized productivity measurement model known as data envelopment analysis (DEA). A medium-sized application of DEA was employed by TAC to evaluate the productivity of its seventeen subordinate vehicle maintenance sections over a four-year period. The application reports gains in productivity and the reactions of the field managers to the use of DEA.     

Trade Union Membership and the Free Rider Problem: the Role of Harassment Activities

Abstract. Although there exists an extensive literature which uses econometric techniques to examine the process of unionisation in the industrial countries, a well established theory about the individual propensity to join the union has still to be developed. We feel that the workers' personal relationships in the working places impinge on their decision to unionise. To this end, we have set out a coercion model of trade union membership without compulsory membership, based on the rank and file union members' harassment activities. Union members use these unfriendly activities to eliminate the free-rider ploblem, encouraging unionisation and reducing the cost of joining a union.     

Differential Overeducation in East and West Germany: Extending Frank's Theory on Economic Returns Changes the Picture of Disadvantaged Women

We test the theory of differential overeducation which predicts that women and particularly partnered women are more affected by overeducation than men. Our OLS and FE estimations based on German SOEP data confirm that women indeed exhibit more years of excess education in both regions. Women's higher educational mismatch accounts for 5 pp of the West German pay gap. However, women suffer lower wage penalties from overeducation than men in both regions and, for partnered people, higher female wage penalties vanish in the FE estimations. Hence, women are more rationed than men concerning overeducation magnitude, confirming Frank's theory, but rather less disadvantaged with respect to economic returns.     

Industrial Relations and Trade Union Effects on Innovation in Germany

ABSTRACT: This paper provides a thoretical and empirical evaluation of unions’effects on innovative activity, focussing on institutional details and country-specific factors. We represent results of an econometric investigation for Germany using data at the industry and establishment level. In contrast to US studies, no statistically significant negative influence of unions on innovative activity shows up from industry-level data. Establishment-level data, however, indicate that the presence of a works council is positive for R & D if union density is not “too high”. This is in line with the more cooperative nature of industrial relations in Germany.     

Industrial Relations in West Germany, 1980-1987

ABSTRACT: The paper describes the structure and state of industrial relations in the Federal Republic of Germany and discusses perspectives and problems of their future development. Its composition follows the syllabus of an internationally comparative research project.     

Institutions and Service Employment: A Panel Study for OECD Countries

Abstract. We live in a service economy, but the extent of development of service employment differs across developed countries. This paper assesses the role of structural factors and institutions in explaining the common patterns and main differences in the recent expansion of service employment in OECD countries. It finds that GDP per capita, the size of the government sector and the extent of urbanization are positively associated with the service employment share. However, the evidence suggests that laws and institutions such as product market regulations, unions and more coordinated wage‐setting systems are hampering the expansion of service employment.     

Transferability of Human Capital and Immigrant Assimilation: An Analysis for Germany

This paper investigates the transferability of human capital from various countries to Germany and the contribution of imperfect human capital portability to the explanation of the immigrant‐native wage gap. Our results reveal that, overall, education and, in particular, labor market experience accumulated in the home countries of the immigrants receive significantly lower returns than human capital obtained in Germany. We further find evidence for heterogeneity in the returns to human capital of immigrants across countries. Finally, imperfect human capital transferability appears to be a major factor in explaining the wage differential between natives and immigrants.     

A Neural Network-Based Method for Risk Factor Analysis of West Nile Virus

There is a lack of knowledge about which risk factors are more important in West Nile virus (WNV) transmission and risk magnitude. A better understanding of the risk factors is of great help in developing effective new technologies and appropriate prevention strategies for WNV infection. A contribution analysis of all risk factors in WNV infection would identify those major risk factors. Based on the identified major risk factors, measures to control WNV proliferation could be directed toward those significant risk factors, thus improving the effectiveness and efficiency in developing WNV control and prevention strategies. Neural networks have many generally accepted advantages over conventional analytical techniques, for instance, ability to automatically learn the relationship between the inputs and outputs from training data, powerful generalization ability, and capability of handling nonlinear interactions. In this article, a neural network model was developed for analysis of risk factors in WNV infection. To reveal the relative contribution of the input variables, the neural network was trained using an algorithm called structural learning with forgetting. During the learning, weak neural connections are forced to fade away while a skeletal network with strong connections emerges. The significant risk factors can be identified by analyzing this skeletal network. The proposed approach is tested with the dead bird surveillance data in Ontario, Canada. The results demonstrate the effectiveness of the proposed approach.     

A Causality Analysis of Economic Growth and Union Density in European Countries

In this paper, we analyse the relationship between union density and economic growth using a Granger causality analysis and shocks analysis with vector autoregression model. We find that the Granger causality goes from the growth rate to the unionization rate in four of the 11 European countries under study. France bucks the trend: it is the only country in which union density influences economic growth, moreover in a positive way.     

Testing for Smooth Structural Changes in Time Series Models via Nonparametric Regression

Checking parameter stability of econometric models is a long‐standing problem. Almost all existing structural change tests in econometrics are designed to detect abrupt breaks. Little attention has been paid to smooth structural changes, which may be more realistic in economics. We propose a consistent test for smooth structural changes as well as abrupt structural breaks with known or unknown change points. The idea is to estimate smooth time‐varying parameters by local smoothing and compare the fitted values of the restricted constant parameter model and the unrestricted time‐varying parameter model. The test is asymptotically pivotal and does not require prior information about the alternative. A simulation study highlights the merits of the proposed test relative to a variety of popular tests for structural changes. In an application, we strongly reject the stability of univariate and multivariate stock return prediction models in the postwar and post‐oil‐shocks periods.     

The Rise of Global Warming Skepticism: Exploring Affective Image Associations in the United States Over Time

This article explores how affective image associations to global warming have changed over time. Four nationally representative surveys of the American public were conducted between 2002 and 2010 to assess public global warming risk perceptions, policy preferences, and behavior. Affective images (positive or negative feelings and cognitive representations) were collected and content analyzed. The results demonstrate a large increase in “naysayer” associations, indicating extreme skepticism about the issue of climate change. Multiple regression analyses found that holistic affect and “naysayer” associations were more significant predictors of global warming risk perceptions than cultural worldviews or sociodemographic variables, including political party and ideology. The results demonstrate the important role affective imagery plays in judgment and decision‐making processes, how these variables change over time, and how global warming is currently perceived by the American public.     

Employer Wage Differentials in Germany: A Comparative Note

The paper contributes to the growing empirical literature on employer wage differentials, presenting first estimates for West Germany and comparing them with recent findings from other studies for the USA, France and Denmark. The empirical results show that the variation of global employer wage differentials is comparatively low in West Germany and has remained stable during the first half of the 1990s. This low dispersion results from wage setting for blue‐collar workers, while cross‐country differences are negligible for white‐collar workers. Employer wage differentials have, however, become more important for the remuneration of West German blue‐collar workers during the period investigated.     

Exploring Strategy Implementation Consistency Over Time: The Moderating Effects of Industry Velocity and Firm Performance

In this paper we empirically investigate the temporal development of a firm’s strategy implementation consistency (SIC), i.e. the alignment between firms’ resource allocation decisions (RAD) and their articulated corporate concept (Noda and Bower, 1996; Burgelman and Grove, 1996; Love et al., 2002; Mintzberg, 1978). Doing so, we test whether (1) SIC is more likely to increase or decline over time, (2) whether firms competing in (low) high-velocity environments in fact show different temporal patterns in SIC, and (3) whether overperforming firms succeed in conserving their level of SIC. For our analysis we draw on 6238 RAD of 20 publicly listed firms with European origin over a period of 4–6 years. Applying maximum likelihood ordered logit estimation, our results indicate that the likelihood of an alignment of RAD and a firm’s corporate concept decreases over time. In line with scholars’ perception of high-velocity environments, we find that the firms in our sample competing under such conditions show no clear trend in SIC. These firms tend to “zig-zag” over time – swaying off and pulling back to their strategic course independent of the timing of the announcement of a corporate concept. We also find that overperforming firms are unsuccessful in preserving their SIC at the same level over time. Based on the empirical findings the paper discusses implications for theory and derives suggestions for corporate level managers on how to balance SIC and strategic flexibility.     

Democracy and Trade Union Action: A Comparative Overview

ABSTRACT: In this paper the author covers the current Italian debate on union representativeness and democracy, i.e. relations between union leadership and the rank-and-file, focusing on democratic procedures adopted (or not) in the internal decision-making process of the labour organisations. Experiments in the area of union self-regulation (autoregolamentazione) are discussed in connection with the collective bargaining process and strike action, mainly in public and private essential services. The author critically compares these experiments with more innovative solutions adopted in Spain, France, U.K., U.S.A. and Japan. Special attention is given to the role played by secret ballots in increasing union responsiveness.