@TechReport{iza:izadps:dp5222, author={Goerke, Laszlo and Pannenberg, Markus}, title={Trade Union Membership and Dismissals}, year={2010}, month={Sep}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={5222}, url={https://www.iza.org/publications/dp5222}, abstract={In Germany, there is no trade union membership wage premium, while the membership fee amounts to 1% of the gross wage. Therefore, prima facie, there are strong incentives to free-ride on the benefits of trade unionism. We establish empirical evidence for a private gain from trade union membership which has hitherto not been documented: in West Germany, union members are less likely to lose their jobs than non-members. In particular, using data from the German Socio-Economic Panel we can show that roughly 50% of the observed raw differential in individual dismissal rates can be explained by the estimated average partial effect of union membership.}, keywords={dismissal;free-riding;trade union membership;survey data}, }