Class Notes - 10-22-07

Class Notes - 10-22-07 - Macroeconomics – Class Notes –...

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Macroeconomics – Class Notes – 10/22/07 Why unemployment? In ideal labor market, would be at equilibrium Four reasons ideal missed: Minimum-wage laws $.25/hr was the original minimum wage in 1936 Unions Efficiency wages Job search Minimum-Wage Laws Minimum-wage above equilibrium (equilibrium wage) creates unemployment . Usually doesn’t affect the wage of most people DOES have an effect on a lot of unskilled labor Unions and Collective Bargaining Union bargains over wages and conditions. Norris Laguardia (1932) – Ended a strike with an injunction Yellow Dog Contract – We’ll hire you if you promise never to join a union (outlawed) Wagner Act of 1935 – Workers were authorized to vote on a union to represent them. Collective Bargaining – Process where unions and firms agree on terms of unemployment (both firm and union bargain in good faith). Unions and Collecting Bargaining
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This note was uploaded on 04/15/2008 for the course ECON 101 taught by Professor Golden during the Fall '07 term at Allegheny.

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Class Notes - 10-22-07 - Macroeconomics – Class Notes –...

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