Risk Aversion and Trade‐Union Membership*

Scandinavian Journal of Economics - Tập 114 Số 2 - Trang 275-295 - 2012
Laszlo Goerke1, Markus Pannenberg2
1IAAEG – University Trier, Campus II, DE‐54286 Trier, Germany
2University of Applied Sciences Bielefeld, DE‐33615 Bielefeld, Germany markus.

Tóm tắt

AbstractIf trade unions provide only their members with insurance against income variations, as a private good, this insurance will provide a stronger incentive for more risk‐averse employees to become union members. Using data from the German Socio‐Economic Panel (SOEP) and various direct measures of individual risk attitudes, we find robust evidence of a positive relationship between risk aversion and the likelihood of union membership for full‐time employees. This association is particularly strong for males and in West Germany.

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