Trade unions, bargaining coverage and low pay: a multilevel test of institutional effects on low-pay risk in Germany

Employment relations scholars argue that industrial relations institutions reduce low pay among the workforce, while the insider-outsider literature claims that unions contribute to increase the low-pay risk among non-union members. This article tests these expectations by distinguishing, respective...

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Main Authors: Benassi, C, Vlandas, T
Format: Journal article
Language:English
Published: SAGE Publications 2021
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author Benassi, C
Vlandas, T
author_facet Benassi, C
Vlandas, T
author_sort Benassi, C
collection OXFORD
description Employment relations scholars argue that industrial relations institutions reduce low pay among the workforce, while the insider-outsider literature claims that unions contribute to increase the low-pay risk among non-union members. This article tests these expectations by distinguishing, respectively, between the individual effect of being a union member or covered by collective agreements and the sectoral effect of strong trade unions or encompassing collective agreements. Findings from multilevel logistic regression analyses of the German Socio-Economic Panel reveal that unions and bargaining coverage have distinct effects at individual and sectoral level. The analysis of their cross-level interactions provides partial support to both the insider-outsider approach, since non-union members are more exposed to the risk of low pay in highly unionized sectors, and to the power resource perspectives, since the probability of being in low pay in sectors with encompassing collective agreements decreases also for those workers who are not covered by them.
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spelling oxford-uuid:046c1a00-2b39-411b-bfa3-9486d87f5f7a2023-01-05T08:33:21ZTrade unions, bargaining coverage and low pay: a multilevel test of institutional effects on low-pay risk in GermanyJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:046c1a00-2b39-411b-bfa3-9486d87f5f7aEnglishSymplectic ElementsSAGE Publications2021Benassi, CVlandas, TEmployment relations scholars argue that industrial relations institutions reduce low pay among the workforce, while the insider-outsider literature claims that unions contribute to increase the low-pay risk among non-union members. This article tests these expectations by distinguishing, respectively, between the individual effect of being a union member or covered by collective agreements and the sectoral effect of strong trade unions or encompassing collective agreements. Findings from multilevel logistic regression analyses of the German Socio-Economic Panel reveal that unions and bargaining coverage have distinct effects at individual and sectoral level. The analysis of their cross-level interactions provides partial support to both the insider-outsider approach, since non-union members are more exposed to the risk of low pay in highly unionized sectors, and to the power resource perspectives, since the probability of being in low pay in sectors with encompassing collective agreements decreases also for those workers who are not covered by them.
spellingShingle Benassi, C
Vlandas, T
Trade unions, bargaining coverage and low pay: a multilevel test of institutional effects on low-pay risk in Germany
title Trade unions, bargaining coverage and low pay: a multilevel test of institutional effects on low-pay risk in Germany
title_full Trade unions, bargaining coverage and low pay: a multilevel test of institutional effects on low-pay risk in Germany
title_fullStr Trade unions, bargaining coverage and low pay: a multilevel test of institutional effects on low-pay risk in Germany
title_full_unstemmed Trade unions, bargaining coverage and low pay: a multilevel test of institutional effects on low-pay risk in Germany
title_short Trade unions, bargaining coverage and low pay: a multilevel test of institutional effects on low-pay risk in Germany
title_sort trade unions bargaining coverage and low pay a multilevel test of institutional effects on low pay risk in germany
work_keys_str_mv AT benassic tradeunionsbargainingcoverageandlowpayamultileveltestofinstitutionaleffectsonlowpayriskingermany
AT vlandast tradeunionsbargainingcoverageandlowpayamultileveltestofinstitutionaleffectsonlowpayriskingermany