Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to Group of answer choices

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Business

Aron Porter

26 March, 13:19

Consider two labor markets in which jobs are equally attractive in all respects other than the wage rate. All workers are equally able to do either job. Initially, both labor markets are perfectly competitive. If a union organizes workers in one of the markets, then the wage rates will tend to Group of answer choices

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Answers (1)

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August · Answer 1

Answer:rise for union jobs and fall for nonunion jobs

Explanation:

Union jobs are the jobs where there is an organization that act as an intermediary between its members and the employer who hires them in order to negotiate for better working environment, better wages and other benefits through collectively bargain.

Due to this collective bargaining usually the wages are high for Union jobs.

Nonunion jobs each worker represent themselves without any collective voice to bargain for better situations at their respective working environment which usually fails.