Labor Economics
7th Edition
ISBN: 9780078021886
Author: George J Borjas
Publisher: McGraw-Hill Education
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Question
Chapter 10, Problem 9P
(a)
To determine
Problems addressed by the legislative changes.
(b)
To determine
Changes in the demand curve of the government and the indifference curve of the union.
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Use a graph to demonstrate the likely bargaining outcomes of three industries, all with identical union resistance curves.a. Firm A has been losing money recently as wages and fringe benefits have risen from 63 to 89 percent of all costs in just the last three years.b. Most of firm B’s revenues come from supplying a product to three customers who use the product in their manufacturing of computers using a just-in-time inventory system.c. Firm C is a local government that finds itself negotiating with its unionized employees. Government officials are pleased with the employees’ productivity, but they also face local pressure to keep taxes low.
What would happen if the efforts to prosecute employers was reduced?
How today’s unions help working people
Giving workers the power to improve their jobs and unrig the economy
Americans have always joined together—whether in parent teacher associations or local community organizations—to solve problems and make changes that improve their lives and their communities. Through unions, people join together to strive for improvements at the place where they spend a large portion of their waking hours: work.
The freedom of workers to join together in unions and negotiate with employers (in a process known as collective bargaining) is widely recognized as a fundamental human right across the globe. In the United States, this right is protected by the U.S. Constitution and U.S. law and is supported by a majority of Americans.1
Over 16 million working women and men in the United States are exercising this right—these 16 million workers are represented by unions. Overall, more than one in nine U.S. workers are represented by unions. This representation makes…
Chapter 10 Solutions
Labor Economics
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. 12RQCh. 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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- Policymakers sometimes propose laws re3quiring firms to give workers certain fringe benefits, such as health insurance or paid parental leave. Let’s consider the effects of such a policy on the labor market.a.Suppose that a law required firms to give each worker $3 of fringe benefits for every hour that the worker is employed by the firm. How does this law affect the marginal profit that a firm earns from each worker at a given cash wage? How does the law affect the demand curve for labor? Draw your answer on a graph with the cash wage on the vertical axis.arrow_forwardWhat are strategies that can be used to ensure the erosion of unions do not happen? If firms pay more for union costs, will the organization be driven to international production of their goods? Lastly, are labor unions a thing of the past?arrow_forwardThe town of Bookville has a massive public library system. Bookville's municipal government faces a tradeoff between retaining the current number of library workers and replacing some of its workers with computers. The four options available to the government are given in table below. Number of workers Number of computers Choice A 30 50 Choice B 20 100 Choice C 10 150 Choice D 5 300 Computers and software cost $5,000 each and must be replaced each year. In a non-unionized labor market, workers are paid $20,000 per year. In these circumstances, the optimal choice from a cost perspective for the city government is Question 4 options: Choice A Choice B Choice C Choice Darrow_forward
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