How Trade Unions Increase Welfare
University of Würzburg - Institute of Economics and Social Sciences
affiliation not provided to SSRN
The Economic Journal, Vol. 122, Issue 563, pp. 990-1009, 2012
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: 20Accepted Paper Series
Date posted: September 4, 2012
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