In the absence of closed-shops and discriminatory wage policies, union membership can be explained by the existence of social norms. We develop a theoretical frame-work which nests various social custom models. Using micro data for Germany and Great Britain, we find evidence for social custom...

In an open-shop model of trade union membership with heterogeneity in risk attitudes, a worker's relative risk aversion can affect the decision to join a trade union. Furthermore, a shift in risk attitudes can alter collective bargaining outcomes. Using German panel data (GSOEP) and three novel...

In an open-shop model of trade union membership with heterogeneity in risk attitudes, a worker's relative risk aversion can affect the decision to join a trade union. Furthermore, a shift in risk attitudes can alter collective bargaining outcomes. Using German panel data (GSOEP) and three novel...