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How Trade Unions Increase Welfare

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Listed:
  • Alejandro Donado
  • Klaus Wälde

Abstract

Historically, worker movements have played a crucial role in making workplaces safer. Firms traditionally oppose better health standards. According to our interpretation, workplace safety is costly for firms but increases the average health of workers and thereby the aggregate labour supply. A laissez-faire approach in which firms set safety standards is suboptimal as workers are not fully informed of health risks associated with jobs. Safety standards set by better-informed trade unions are output and welfare increasing.

Suggested Citation

  • Alejandro Donado & Klaus Wälde, 2011. "How Trade Unions Increase Welfare," CESifo Working Paper Series 3618, CESifo.
    • Handle: RePEc:ces:ceswps:_3618
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    References listed on IDEAS

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    More about this item

    Keywords

    occupational health and safety; trade unions; welfare;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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