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Trade Unions go global!

  • Alejandro Donado
  • Klaus Wälde

Worker movements played a crucial role in making workplaces safer. Workplace safety is costly for firms but increases labour supply. A laissez-faire approach leav- ing safety of workplaces unknown is suboptimal. Safety standards set by better- informed trade unions are output and welfare increasing. Trade between a country with trade unions (the North) and a union-free country (the South) can imply a reduction in work standards in the North. When trade unions are established in the South, the North, including northern unions, tend to lose. Quantitatively, these effects are small and overcompensated by gains in the South.

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Paper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2008_22.

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Date of creation: Jul 2008
Date of revision: Aug 2008
Handle: RePEc:gla:glaewp:2008_22
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