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Unions as insurence: Employer–worker risk sharing and workers‘ outcomes during COVID-19

Author

Listed:
  • Nils Braakmann

    (Newcastle University, Business School – Economics, Newcastle upon Tyne)

  • Boris Hirsch

    (Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre)

Abstract

We investigate to what extent workplace unionisation protects workers from external shocks as predicted by models of implicit contracts. Using the COVID-19 pandemic as a plausibly exogenous shock hitting the whole economy, we compare workers who worked in unionised and non-unionised workplaces directly before the pandemic in a difference-in-differences framework. We find that unionised workers were substantially more like to remain working for their pre-COVID employer, at their pre-COVID workplace, in their pre-COVID job and to be in employment. This greater employment stability was not traded off against lower working hours or labour income.Length: 31 pages

Suggested Citation

  • Nils Braakmann & Boris Hirsch, 2023. "Unions as insurence: Employer–worker risk sharing and workers‘ outcomes during COVID-19," Working Paper Series in Economics 418, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:418
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    More about this item

    Keywords

    Unions; risk-sharing; implicit contracts; insurance effects; COVID-19;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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