TheGhent effect for whom? Mapping the variations of theGhent effect across different trade unions inDenmark

Abstract

AbstractThe presence of an unemployment insurance system based on voluntary membership in unemployment insurance funds (known as the ‘Ghent system’) and a high union density has long been known and well documented, and even referred to as a special ‘Ghent effect’. However theGhent system, especially in the three classicGhent countries,Finland,Sweden andDenmark, has come under significant pressure in recent years, and many researchers are referring to an erosion of theGhent system as a recruiting mechanism for trade unions. But prior research aimed at documenting theGhent effect seems to disregard variations in how strongly trade unions benefit from theGhent system as a recruiting mechanism. Hence, this article sets out to investigate whether all trade unions equally benefit from aGhent effect across different sectors and occupations by studying theDanish case. Unique survey data made it possible to mapDanish wage earners' reasons for joining or leaving unemployment insurance funds and trade unions. The article finds that there are great variations amongDanish trade unions in terms of how strongly they are dependent on aGhent effect as a recruiting mechanism. We may expect the same variations in the two otherGhent countries,Sweden andFinland, because the organisation of theGhent system is similar in the three Nordic countries. In addition, the article shows that this variation might help explain why some trade unions are on the rise to the detriment of others.