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How Trade Unions Increase Welfare


Alejandro Donado


University of Würzburg - Institute of Economics and Social Sciences

Klaus Wälde


affiliation not provided to SSRN
September 2012

The Economic Journal, Vol. 122, Issue 563, pp. 990-1009, 2012

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.

Number of Pages in PDF File: 20

Accepted Paper Series


Date posted: September 4, 2012  

Suggested Citation

Donado, Alejandro and Wälde, Klaus, How Trade Unions Increase Welfare (September 2012). The Economic Journal, Vol. 122, Issue 563, pp. 990-1009, 2012. Available at SSRN: http://ssrn.com/abstract=2141088 or http://dx.doi.org/10.1111/j.1468-0297.2012.02513.x

Contact Information

Alejandro Donado (Contact Author)
University of Würzburg - Institute of Economics and Social Sciences ( email )
Sanderring 2
Wuerzburg, 97070
Germany
Klaus Wälde
affiliation not provided to SSRN
No Address Available
Feedback to SSRN (Beta)


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