Asked by Loretta Foshee on Jun 08, 2024
Verified
When unions raise wages in one part of the economy, the supply of labor increases in other parts of the economy, which reduces wages in industries that are not unionized.
Supply Of Labor
The total hours that workers wish to work at a given wage rate, representing the workforce available for employment.
Unionized
A condition where employees are organized into unions to collectively bargain with employers over wages, benefits, and working conditions.
- Appraise the positive and negative perspectives on unions, detailing their implications for efficiency and equity in labor markets.
Verified Answer
SC
Sarah ChamberlainJun 09, 2024
Final Answer :
True
Explanation :
When unions raise wages in one part of the economy, workers may be attracted to these higher-paying union jobs, leading to an oversupply of labor in non-unionized sectors. This oversupply can put downward pressure on wages in those sectors, as there are more workers competing for the same jobs.
Learning Objectives
- Appraise the positive and negative perspectives on unions, detailing their implications for efficiency and equity in labor markets.
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