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How Trade Unions Increase Welfare

Author

Listed:
  • 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.

Suggested Citation

  • Alejando Donado & Klaus Wälde, 2010. "How Trade Unions Increase Welfare," Working Papers 1010, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz, revised 19 Aug 2010.
  • Handle: RePEc:jgu:wpaper:1010
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    References listed on IDEAS

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    More about this item

    Keywords

    occupational health and safety; trade unions; welfare;
    All these keywords.

    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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