TY - RPRT AU - Goerke, Laszlo AU - Pannenberg, Markus TI - Trade Union Membership and Sickness Absence: Evidence from a Sick Pay Reform PY - 2012/Aug/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 6777 UR - https://www.iza.org/publications/dp6777 AB - In 1996, statutory sick pay was reduced for private sector workers in Germany. Using the empirical observation that trade union members are dismissed less often than non-members, we construct a model to predict how absence behaviour will respond to the sick pay reform. We show that union members may have stronger incentives to be absent and to react to the cut in sick pay. In the empirical investigation, we find a positive relationship between trade union membership and absence due to sickness and observe more pronounced reactions to the cut in sick pay among union members than among non-members. These findings suggest that more flexibility in the use of paid absence due to sickness constitutes a private gain from trade union membership. KW - Socio-Economic Panel (SOEP) KW - sickness-related absence KW - difference-in-differences KW - statutory sick pay KW - trade union membership ER -