Trade union membership and bonus payments: German survey evidence
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 can 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 and amount of bonuses 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 decreases in base wages or other pay components.
Authors
- Laszlo Goerke (ORCID: https://orcid.org/0000-0002-7621-5054)
- Marco Clemens (ORCID: https://orcid.org/0009-0002-7085-176X)
Institutions
- Institute for Labour Law and Industrial Relations in the European Union (DE)
- Deutsche Bundesbank (DE)
Publication Details
- Journal
- Journal of Economic Behavior & Organization
- Published
- 2026-01-06
- DOI
- https://doi.org/10.1016/j.jebo.2025.107404
- Primary Topic
- Labor Movements and Unions
- Type
- article
- Field-Weighted Citation Impact
- 0.00