How Trade Unions Increase Welfare
AbstractHistorically, 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 average health of workers and thereby 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.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2010027.
Date of creation: 30 Aug 2010
Date of revision:
occupational health and safety; trade unions; welfare;
Other versions of this item:
- Alejando Donado & Klaus Wälde, 2010. "How Trade Unions Increase Welfare," Working Papers 1010, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 19 Aug 2010.
- Donado, Alejandro & Wälde, Klaus, 2010. "How trade unions increase welfare," W.E.P. - WÃ¼rzburg Economic Papers 83, University of Würzburg, Chair for Monetary Policy and International Economics.
- Alejandro Donado & Klaus Wälde, 2011. "How Trade Unions Increase Welfare," CESifo Working Paper Series 3618, CESifo Group Munich.
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-11 (All new papers)
- NEP-BEC-2010-09-11 (Business Economics)
- NEP-LAB-2010-09-11 (Labour Economics)
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