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Trade union membership and bonus payments: German survey evidence

Year: 2026

Type: article

Abstract: 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.

Source: Journal of Economic Behavior & Organization

DOI: 10.1016/j.jebo.2025.107404

Authors: Marco Clemens, Laszlo Goerke

Institutions: Deutsche Bundesbank, Institute for Labour Law and Industrial Relations in the European Union, Universität Trier

Language: English

Topic: Labor Movements and Unions

Subfield: Public Administration

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,180