In: Economics
What is the relationship between union wages and employment?
What are some issues affecting labor supply and utility maximization?
Answer.
Basically, Unions have a substantial impact on the compensation and work lives of both unionized and non-unionized workers.
Unions function as labor cartels, restricting the number of workers in a company or industry to drive up the remaining workers' wages. They also retard economic growth and delay recovery from recession. Over time, unions destroy jobs in the companies they organize and have the same effect on business investment as does a 33 percentage point corporate income tax increase.
The Key takeaways are,
Some issues affecting labor supply and utility maximization are,
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