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Turning non-members into members: Do public subsidies to union membership matter?

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  • Barth, Erling
  • Bryson, Alex
  • Dale-Olsen, Harald

Abstract

Using linked employer-employee data for Norway's private sector we estimate the impact of changes in tax subsidies for union membership on individuals’ membership probabilities. Increased subsidisation of the union members increases union take-up, while increased union fees reduce the demand for membership. The subsidy elasticity of demand for union membership was 0.29 in 2012, though effects are heterogeneous across workers. In the absence of the hikes in tax subsidies and holding workforce composition constant aggregate private sector union membership density would have fallen by 5 percentage points between 2001 and 2012. The elasticity of union membership with respect to subsidies is higher in segments of the labour market where unions have low representation in the first place, such as among temporary workers, youth, immigrants, and among workers in low-wage firms.

Suggested Citation

  • Barth, Erling & Bryson, Alex & Dale-Olsen, Harald, 2025. "Turning non-members into members: Do public subsidies to union membership matter?," Journal of Economic Behavior & Organization, Elsevier, vol. 229(C).
    • Handle: RePEc:eee:jeborg:v:229:y:2025:i:c:s0167268124004694
    DOI: 10.1016/j.jebo.2024.106855
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    More about this item

    Keywords

    Trade unions; Union membership; Wages; Tax subsidies;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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