Asked by Kennedy Brame on Jun 08, 2024
Verified
Briefly describe how labor unions can affect wages in non-unionized industries.
Labor Unions
Organizations representing workers in various industries, advocating for better wages, working conditions, and benefits for their members.
Non-Unionized Industries
Sectors of the economy where the workforce is not part of a labor union or covered by a collective bargaining agreement.
- Examine the effects of labor unions on compensation, employment rates, and the overall economic landscape.
Verified Answer
JC
JKube CloudJun 09, 2024
Final Answer :
If labor unions raise wages above the equilibrium level, some workers who want union jobs will be unemployed because the quantity supplied of unionized jobs will exceed the quantity demanded. If those workers seek jobs in non-unionized industries, the supply of labor in those industries will increase, which lowers wages in non-unionized industries, all else equal.
Learning Objectives
- Examine the effects of labor unions on compensation, employment rates, and the overall economic landscape.