Principles of Microeconomics / Unit 13 MIC 1220 short lesson, about 20 seconds
Unions and the Union Wage
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The idea
A union bargains for its members collectively, backed by the strike threat: a monopoly seller of labor. A union wage above equilibrium means firms hire fewer, and more want union jobs than exist.
In practice
Job loss can arrive as attrition or relocation rather than layoffs.
Where people slip
Against a monopsonist the union pushes the wage toward workers' worth; against competitive firms it costs jobs.
Your place on the trail
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