How Trade Unions Increase Welfare

Donado, Alejandro;Walde, Klaus
(2010) , 24 pages

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Authors
  • Donado, AlejandroUniversity of Wurzburg
    Author
  • Walde, KlausUCLouvain
    Author
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 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.
Affiliations
  • University of Wurzburg
  • University of Mainz, Universite catholique de Louvain and CESifo
  • Institution iconUCLouvainESPO/IRES - Institut de recherches économiques

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Donado, A., & Walde, K. (2010). How Trade Unions Increase Welfare (IRES Discussion papers 2010027). https://hdl.handle.net/2078.5/45804