How Trade Unions Increase Welfare

Gutenberg School of Management and Economics Discussion Paper No. 1010

26 Pages Posted: 10 Sep 2010

See all articles by Alejandro Donado

Alejandro Donado

Frankfurt School of Finance & Management gemeinnützige GmbH

Klaus Wälde

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

Multiple version iconThere are 2 versions of this paper

Date Written: August 19, 2010

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.

Keywords: occupational health and safety, trade unions, welfare

JEL Classification: J51, J81

Suggested Citation

Donado, Alejandro and Wälde, Klaus, How Trade Unions Increase Welfare (August 19, 2010). Gutenberg School of Management and Economics Discussion Paper No. 1010, Available at SSRN: https://ssrn.com/abstract=1673864 or http://dx.doi.org/10.2139/ssrn.1673864

Alejandro Donado

Frankfurt School of Finance & Management gemeinnützige GmbH ( 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)

Poschinger Str. 5
Munich, DE-81679
Germany

UCL at Louvain la Neuve

Place Montesquieu, 3
Louvain-la-Neuve, 1348
Belgium

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