Trade Unions and Workers’ Life Satisfaction in South Korea

This study analyses the effects of trade unions’ presence in workplaces and union membership on workers’ overall life satisfaction. We estimate a correlated random effects panel ordered probit model using the Korean Labor and Income Panel Study. While the presence of unions increases the probability of reporting a higher level of overall life satisfaction, union membership has no effect. These effects exist only for healthy men who are employed on a permanent contract. Finally, we show that unions’ effects on life satisfaction have four mediating channels—job satisfaction, social security, real wage and fringe benefits.