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How Trade Unions Increase Welfare

  • Alejandro Donado
  • Klaus Wälde

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.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2011/wp-cesifo-2011-10/cesifo1_wp3618.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3618.

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Date of creation: 2011
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Handle: RePEc:ces:ceswps:_3618
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  5. repec:cup:cbooks:9780521464673 is not listed on IDEAS
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  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.
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