In: Economics
A closed shop is one where all employees have to become union members after being hired.Union shop is one where all employees are union members . A closed shop is one where the employers can hire workers through the union.A non union worker may be hired in a union shop but must become member of the union.The union shop guarantees every qualified person the right to work.Closed shops have been illegal in the United states since 1947.But union shops are legal everywhere.
The firms will have to be members of union shops since closed shops are illegal in US.
The goal of the monopolist in the labor market is to make the free market short so that he is the only one in the market for certain product. Since there are no competitors, consumers will have to come to the monopolist for the product. The labor union does exactly the same . The labor union takes people who are looking for jobs and would otherwise be competitors ,and change them into colluders.. So once they become successful in capturing the market for human capital,they can charge whatever they want.