Abstract
The years up to 1939 constitute the penetration phase of unions in Denmark. Models of the Ashenfelter-Pencavel or Bain-Elsheikh type are not able to explain the development in the degree of unionization. A model with special emphasis on the narrow relationship between union membership and unemployment insurance in Denmark gives a much more satisfactory explanation. The benefit wage ratio and real payments to unemployment insurance contribute significantly in explaining union growth. In addition the rate of inflation has a significantly positive effect.
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