economics answer 1.docx - Point-1 Union wage negotiations Without a union the equilibrium at E would involved the wage we and the quantity of labor Qe

economics answer 1.docx - Point-1 Union wage negotiations...

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Point -1 Union wage negotiations. Without a union, the equilibrium at E would involved the wage we and the quantity of labor Qe. However, the union id able to use its bargaining power to raise the wage to Wu. The result is an excess supply of labor for union jobs , that is , a quantity of labor supplied, Qs is greater than firms quantity demanded for labor, Qd. Point -2 The power of unions to set nonunion workers’ pay has fallen since 1979 Union density effect on nonunion wages, 1979-2013 Note - line show the predicted change in earnings for a 1 percentage point increase in unionization. The sample is restricted to nonunion, full tie workers in the private sector age are measured in 2013 dollars. The power of unions to set nonunion, non- college graduate workers’ pay has fallen since 1979
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Union density effect on wages of nonunion workers without a college degree, 1979-2013 Note- lines show the predicted change in earnings for 1 percentage- point increase in
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  • Winter '17
  • Nonunion, 2013 dollars, Union wage negotiations

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