Unions and Wages

… a core concept in Economic Analysis and Atlas102

Click for MRU video

Click for MRU video

Concept description

Alex Tabarrok (reference below, video on right) explores the question of the effect of unions on the level of wages in an economy.

Tabarrok concludes that unions (including professional associations such as those representing doctors) can raise the wages for particular groups of workers if they are able to restrict the supply of labour but unions do not raise the wages generally and can reduce overall wages if industrial relations conflicts disrupt the economy.

 

UnionWages2 UnionWages3

UnionWages4
Practice questions

From http://www.mruniversity.com/node/301762, accessed 9 May 2016.

  1. The main reason that an immigrant earns more when he moves from Algeria to France is because the French have strong labor unions.

Source

Alex Tabarrok, Do Unions Raise Wages (5-minute video), Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-microeconomics/do-labor-unions-raise-wages-workers, accessed 9 May 2016.

Atlas topic and subject

Labour Markets, Transfers, and Personal Taxes (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Page created by: Ian Clark, last modified on 19 May 2016.

Image: Alex Tabarrok, minute 0:15 from Do Unions Raise Wages (5-minute video), Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-microeconomics/do-labor-unions-raise-wages-workers, accessed 9 May 2016.from from the videos cited above.