Trade union membership and bonus payments: German survey evidence
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.
Fields of Study & Subjects
Labor Movements and Unions
Labor market dynamics and wage inequality
Cooperative Studies and Economics
Publication details
- Journal / source
- Journal of Economic Behavior & Organization
- Volume
- 242
- Pages
- 107404–107404
- Publication date
- 6 January 2026
- Language
- EN