Externalities and Institutions: The Decrease in Working Hours nineteenth Century France

In 19th century France, the long working hours, produced worse conditions for the working classes even at times when real wages were increasing. In our view, the analysis of the process of decreasing of working hours, consists of identifying very long working hours as externalities. We show that even though there is a monetary transaction involved in the work contract, workers were in no position to defend their term interests and more precisely their health. We sustain that internalisation of externalities has been historically achieved through a collective effort to provide information and through the building of new institutions (unions, laws,...).