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Unions as insurance: Employer–worker risk sharing and workers' outcomes during COVID-19

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Braakmann, Nils ; Hirsch, Boris

Institute of Labor Economics, Bonn

IZA - Bonn

2023

33 p.

trade unionization ; trade union membership ; epidemic disease ; employment security

United Kingdom

Discussion Paper

15893

Trade unionism

https://docs.iza.org/dp15893.pdf

English

Bibliogr.

"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."

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