How Trade Unions Increase Welfare

25 Pages Posted: 26 Oct 2011

See all articles by Alejandro Donado

Alejandro Donado

Frankfurt School of Finance & Management

Klaus Wälde

University of Mainz; CESifo (Center for Economic Studies and Ifo Institute); UCL at Louvain la Neuve

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Date Written: October 25, 2011

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.

Keywords: occupational health and safety, trade unions, welfare

JEL Classification: J510, J810

Suggested Citation

Donado, Alejandro and Wälde, Klaus, How Trade Unions Increase Welfare (October 25, 2011). CESifo Working Paper Series No. 3618, Available at SSRN: https://ssrn.com/abstract=1949074

Alejandro Donado

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

Klaus Wälde (Contact Author)

University of Mainz ( email )

Mainz School of Management and Economics
Mainz, 55128
Germany
+49 6131 3920143 (Phone)

HOME PAGE: http://www.waelde.com

CESifo (Center for Economic Studies and Ifo Institute)

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Munich, DE-81679
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UCL at Louvain la Neuve

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Belgium

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