Contemporary Labor Economics Iona College资料.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Union Responses to Decline Increased mergers among unions Example: NEA and AFT Changes in strategies Unions have increased organizing efforts and targeted white-collar workers. Unions have tried to avoid strikes and used work slowdowns in their place. Less emphasis on wage and more on work conditions, i.e., safety, schedules, parental leave, etc. Questions for Thought 1. Critically evaluate each of these statements: (a) “The relative decline of the American labor movement can be explained by the shift from goods- producing to service-producing industries and the closely related shifts from blue-collar to white-collar occupations and from male to female employees. (b) “The success of unions in raising their wages relative to nonunion workers has contributed to the decline in unionism. (c) “Unionized firms have tended to be less profitable, and therefore, employers are more resistant to unionization. 4. What Do Unions Want? Monopoly Union Model Efficient Contracts Model Monopoly Union Model Economists usually assume that the goal of a union is to increase both the wages and employment of its members. Economists construct union indifference curves that show the combinations of wage and employment where the union is indifferent. Characteristics of indifference curves Negatively sloped Convex Monopoly Union Model The monopoly union model assumes that the union sets the wage rate and the firm sets the level of union employment based on this wage rate. The firm maximizes profits and thus chooses an employment level based on its labor demand curve. The available wage and employment combinations for the union are on the labor demand curve. Monopoly Union Model Employ Wage 0 In the monopoly union model, the utility maximizing wage and employment for the union is point u, wh