How Trade Unions Increase Welfare

20 Pages Posted: 4 Sep 2012

See all articles by Alejandro Donado

Alejandro Donado

Frankfurt School of Finance & Management gemeinnützige GmbH

Klaus Wälde

affiliation not provided to SSRN

Multiple version iconThere are 3 versions of this paper

Date Written: September 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.

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: https://ssrn.com/abstract=2141088 or http://dx.doi.org/10.1111/j.1468-0297.2012.02513.x

Alejandro Donado (Contact Author)

Frankfurt School of Finance & Management gemeinnützige GmbH ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

Klaus Wälde

affiliation not provided to SSRN

No Address Available

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