LABOR ECONOMICS LOOSE PRINT UPGRADE
20th Edition
ISBN: 9781264115211
Author: BORJAS
Publisher: MCG
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Question
Chapter 10, Problem 1RQ
To determine
Explain the factors accounted for the decline in the private sector unionism and rapid increase in the public sector unionism.
Expert Solution & Answer
Explanation of Solution
The factors accounted for the decline in the private sector unionism since 1960’s can be listed as follows.
- Use of yellow-dog contract by the employers: this contract prohibited the joining of new labors in the union. The restrictions faced by the labors lead to a decline in the private sector unionism.
- During the middle of 1960’s, the wages of workers in the private sector begin to rise. This also becomes a reason of decline in the private sector unionism.
- Corruption by the union leaders: the increased corruption among the union leaders pulls down the faith of union members on union.
The factors accounted for the rapid increase in the public sector unionism during the same period can be listed as follows.
- Collective bargaining power over wages.
- Good working and achieved benefits of the members.
- Provided job securities.
- Representing members in any dispute, if it necessary.
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Chapter 10 Solutions
LABOR ECONOMICS LOOSE PRINT UPGRADE
Ch. 10 - Prob. 1RQCh. 10 - Prob. 2RQCh. 10 - Prob. 3RQCh. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - Prob. 7RQCh. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - Prob. 10RQ
Ch. 10 - Prob. 11RQCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Major League Baseball players are not eligible for...Ch. 10 - Prob. 15P
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Similar questions
- Workers walk away from their jobs and refuse to return until the issue at hand has been resolved. This situation best describes which of the following union tactics? Choose one answer .a. Picketing Boycott Strike Lockoutarrow_forwardSuppose the firm’s labor demand curve is given by w = 20 - 0.01E where w is the hourly wage and E is the level of employment. Suppose also that the union’s utility function is given by U = w * E It is easy to show that the marginal utility of the wage for the union is E and the marginal utility of employment is w. What wage would a monopoly union demand? How many workers will be employed under the union contract?arrow_forwardWhat percentage of wage and salary workers are union members? Is this percentage higher, or is it lower, than in previous decades? Which of the factors explaining the trend do you think is most dominant?arrow_forward
- Which of the following is a possible explanation for the decline in union membership since the 1970s? Question 14 options: Increased global competition. U.S. laws make it difficult for unions to organize. U.S. workers see less need for labor unions. All of the above.arrow_forwardWhich of the following statements is most accurate? Unionization almost always results in improvements to workplace productivity The effects of unionization on productivity are mixed; sometimes it results in an increase and sometimes it results in a decrease Unionization generally has no effect on workplace productivity Unionization almost never results in improvements to workplace productivityarrow_forwardExplain why monopsony gives rise to union development in labor markets.arrow_forward
- (a) Would you expect unionization to cause wages to increase, decrease, or remain the same relative to a non-unionized labor equilibrium? (b) Would you expect unionization to cause the quantity of labor employed to increase, decrease, or remain the same relative to a non-unionized labor equilibrium? (c) Offer two ways that unions can increase worker productivity.arrow_forwardPart I: Suppose the firm's labor demand curve is given by: w = 60 – 0.03E where w is the hourly wage andE is the level of employment. Suppose also that the union's utility function is given by: U = w x E The marginal utility of the wage for the union is E and the marginal utility of employment is w. (a) How many workers will be employed under a monopoly union contract? (b) What wage would a monopoly union demand?arrow_forwardDescribe how we calculate the percentage decline in national income resulting from the misallocation of labor in a model of monopoly unionism. What is the dollar value of this allocative inefficiency if unions and firms reach efficient contracts and the contract curve is vertical?arrow_forward
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