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How trade unions increase welfare

  • Alejandro Donado
  • Klaus Wa¨lde

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 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://hdl.handle.net/10.1111/j.1468-0297.2012.02513.x
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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 122 (2012)
Issue (Month): 563 (09)
Pages: 990-1009

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Handle: RePEc:ecj:econjl:v:122:y:2012:i:563:p:990-1009
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  13. repec:cup:cbooks:9780521464673 is not listed on IDEAS
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