Union membership in the Netherlands: A cross-sectional analysis

In this paper we analyze the determinants of union membership in the Netherlands. Not only the unionization decision is studied, but also the decision which confederation the workers will join. Furthermore, a test is presented to determine the nature of the decision process; we ask whether the decision to join a union and the decision which confederation to join are sequential or simultaneous decisions. The answer is not only of consequence for the model specification, but also affects the conclusions drawn from the estimations. In our analysis we find a considerable number of significant variables, most of them with the expected sign. If a variable has an effect contrary to expectation this can largely be attributed to specific Dutch circumstances. This shows that a general theory on the determinants of union membership can never be wholly universal, but always has to allow for nationally determined exceptions. Our results further demonstrate the importance of careful specification of the structure of the decision process. The comparison of the results of the multinomial and the sequential logit model show that misspecification of the decision structure can lead to false conclusions. In the Netherlands, the decision to become a union member is taken prior to the decision which particular union to join.