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How Trade Unions Increase Welfare

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Author Info

  • Alejando Donado

    ()
    (Department of Economics, University of Würzburg, Germany)

  • Klaus Wälde

    (Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, Germany)

Abstract

Historically, worker movements have played a crucial role in making workplaces safer. Firms traditionally oppose better health standards. According to our in- terpretation, 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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File URL: http://www.macro.economics.uni-mainz.de/RePEc/pdf/Discussion_Paper_1010.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz in its series Working Papers with number 1010.

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Length: 26 pages
Date of creation: 19 Aug 2010
Date of revision: 19 Aug 2010
Handle: RePEc:jgu:wpaper:1010

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Postal: Haus Recht und Wirtschaft I, Jakob-Welder-Weg 9, D-55128 Mainz
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Web page: http://wiwi.uni-mainz.de/index.html
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Related research

Keywords: occupational health and safety; trade unions; welfare;

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References

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  1. Janet Currie & Brigitte C. Madrian, 1998. "Health, Health Insurance and the Labor Market," JCPR Working Papers 27, Northwestern University/University of Chicago Joint Center for Poverty Research.
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  6. Booth,Alison L., 1994. "The Economics of the Trade Union," Cambridge Books, Cambridge University Press, number 9780521464673, October.
  7. Matthias Doepke & Fabrizio Zilibotti, 2005. "The macroeconomics of child labor regulation," Staff Report 354, Federal Reserve Bank of Minneapolis.
  8. Agell, J., 1998. "On the Benefits from Rigid Labour Markets: Norms, Market Failures, and Social Insurance," Papers 1998:17, Uppsala - Working Paper Series.
  9. Alejandro Donado & Klaus Wälde, 2008. "Trade Unions go global!," Working Papers 2008_22, Business School - Economics, University of Glasgow, revised Aug 2008.
  10. Shulamit Kahn, 1990. "What Occupational Safety Tells Us about Political Power in Union Firms," RAND Journal of Economics, The RAND Corporation, vol. 21(3), pages 481-496, Autumn.
  11. Price V. Fishback, 1998. "Operations of "Unfettered" Labor Markets: Exit and Voice in American Labor Markets at the Turn of the Century," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 722-765, June.
  12. Joshua Hall & Peter Leeson, 2007. "Good for the Goose, Bad for the Gander: International Labor Standards and Comparative Development," Journal of Labor Research, Springer, vol. 28(4), pages 658-676, September.
  13. Tito Boeri & Michael C. Burda, 2009. "Preferences for Collective Versus Individualised Wage Setting," Economic Journal, Royal Economic Society, vol. 119(540), pages 1440-1463, October.
  14. Paul Fenn & Simon Ashby, 2004. "Workplace Risk, Establishment Size and Union Density," British Journal of Industrial Relations, London School of Economics, vol. 42(3), pages 461-480, 09.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. How trade unions increase welfare
    by rené böheim in Econ Tidbits on 2012-09-06 15:36:00
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Cited by:
  1. Donado, Alejandro & Wälde, Klaus, 2012. "Globalization, trade unions and labour standards in the North," ILO Working Papers 469448, International Labour Organization.
  2. Haile, Getinet Astatike, 2012. "Union Decline in Britain: Is Chauvinism Also to Blame?," IZA Discussion Papers 6536, Institute for the Study of Labor (IZA).
  3. Hartmut Egger & Daniel Etzel, 2012. "Union Wage Setting and International Trade," IAAEU Discussion Papers 201209, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
  4. Haile, Getinet Astatike & Bryson, Alex & White, Michael, 2012. "Heterogeneity in Union Status and Employee Well-Being," IZA Discussion Papers 7075, Institute for the Study of Labor (IZA).
  5. Uwe Jirjahn, 2013. "Der Beitrag der Arbeitsmarktökonomik zur Erforschung von Gewerkschaften und Tarifvertragsbeziehungen in Deutschland," Research Papers in Economics 2013-03, University of Trier, Department of Economics.
  6. Donado, Alejandro, 2013. "Why Do Unionized Workers Have More Nonfatal Occupational Injuries?," Working Papers 0551, University of Heidelberg, Department of Economics.

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