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How Trade Unions Increase Welfare

Author

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 Group Munich.
  • Handle: RePEc:ces:ceswps:_3618
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp3618.pdf
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    References listed on IDEAS

    as
    1. Mezzetti, Claudio & Dinopoulos, Elias, 1991. "Domestic unionization and import competition," Journal of International Economics, Elsevier, vol. 31(1-2), pages 79-100, August.
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    Citations

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    Cited by:

    1. 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.
    2. 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).
    3. Alejandro Donado, 2015. "Why Do Unionized Workers Have More Nonfatal Occupational Injuries?," ILR Review, Cornell University, ILR School, vol. 68(1), pages 153-183, January.
    4. Beate Schirwitz, 2013. "Business Fluctuations, Job Flows and Trade Unions - Dynamics in the Economy," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 47, March.
    5. Haile, Getinet & Bryson, Alex & White, Michael, 2015. "Spillover effects of unionisation on non-members' wellbeing," Labour Economics, Elsevier, vol. 35(C), pages 108-122.
    6. Daron Acemoglu & James A. Robinson, 2015. "The Rise and Decline of General Laws of Capitalism," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 3-28, Winter.
    7. repec:ilo:ilowps:469448 is not listed on IDEAS
    8. repec:bla:scotjp:v:64:y:2017:i:1:p:25-49 is not listed on IDEAS
    9. 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).
    10. Crawford Charman & Ann L. Owen, 2014. "Collective happiness: labour union membership and life satisfaction," Applied Economics Letters, Taylor & Francis Journals, vol. 21(13), pages 924-927, September.
    11. Izabela Jonek-Kowalska, 2014. "Employment and Remuneration Trends in Polish Hard Coal Mines in the Context of the Relations Between Boards and Trade Unions," International Journal of Synergy and Research, ToKnowPress, vol. 3(1), pages 27-43.
    12. Haile, Getinet Astatike, 2012. "Union Decline in Britain: Is Chauvinism Also to Blame?," IZA Discussion Papers 6536, Institute for the Study of Labor (IZA).
    13. repec:bla:indrel:v:48:y:2017:i:1:p:72-93 is not listed on IDEAS
    14. Jorge Calero & Álvaro Choi, 2015. "The distribution of skills among the European adult population and unemployment: a comparative approach," Working Papers 2015/35, Institut d'Economia de Barcelona (IEB).
    15. Donado, Alejandro. & Wälde, Klaus., 2012. "Globalization, trade unions and labour standards in the North," ILO Working Papers 994694483402676, International Labour Organization.
    16. Haile, Getinet Astatike, 2016. "Men, Women and Unions," IZA Discussion Papers 10438, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    occupational health and safety; trade unions; welfare;

    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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