2. In the retail trade industry, unionized workers earn 19.0% more than non-unionized workers do. As you learned in class, this does not necessarily mean that non-union workers who gained union membership would receive raises of (on average) 19%, nor does it mean that the existence of the union increased the wages of workers who were able to join the union by 19%. a. As we noted in class, many unions prefer to grant union membership to workers with a significant amount of work experience in the industry. In light of that fact alone, is the 19% difference between union and non-union wages an overestimate or an underestimate of the value of belonging to a labor union? (Other factors might also affect that comparison, but ignore them for this part of the question.)
2. In the retail trade industry, unionized workers earn 19.0% more than non-unionized workers do. As you learned in class, this does not necessarily mean that non-union workers who gained union membership would receive raises of (on average) 19%, nor does it mean that the existence of the union increased the wages of workers who were able to join the union by 19%. a. As we noted in class, many unions prefer to grant union membership to workers with a significant amount of work experience in the industry. In light of that fact alone, is the 19% difference between union and non-union wages an overestimate or an underestimate of the value of belonging to a labor union? (Other factors might also affect that comparison, but ignore them for this part of the question.)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST9: Do Labor Unions Increases The Wages Of Workers?
Section: Chapter Questions
Problem 1CQ
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