第14 要素投入品市场.pptVIP

1 2 2 2 2 2 2 Chapter 14 Slide * A Two-Sector Model of Labor Employment Union monopoly power impacts the nonunionized part of the economy. Factor Markets with Monopoly Power Chapter 14 Slide * Wage Determination inUnionized and Nonunionized Sectors Number of Workers Wage per worker DU DNU DL SL w* wU When a monopolistic union raises the wage rate in the unionized sector of the economy from w* to wU, employment in that sector falls. For the total supply of labor to remain unchanged, the wage in the nonunionized sector must fall from w* to wNU.. wNU Chapter 14 Slide * Bilateral Monopoly Market in which a monopolist sells to a monopsonist. Factor Markets with Monopoly Power Chapter 14 Slide * Bilateral Monopoly Number of Workers Wage per worker DL = MRPL MR 5 10 15 20 25 10 20 40 SL = AE ME 25 19 Wage Possibilities wC Chapter 14 Slide * Bilateral Monopoly Number of Workers Wage per worker DL = MRPL MR 5 10 15 20 25 10 20 40 SL = (AE) ME 25 19 wC Observations Hiring without union monopoly power MRP = ME at 20 workers and w = $10/hr Union’s objective MR = MC at 25 workers and w = $19/hr Chapter 14 Slide * Bilateral Monopoly Who Will Win? The union will if its threat to strike is credible. The firm will if its threat to hire non-union workers is credible. If both make credible threats the wage will be at wc. Chapter 14 Slide * The Decline of Private Sector Unionism Observations Union membership and monopoly power has been declining. Initially, during the 1970’s, union wages relative to nonunion wages fell. Chapter 14 Slide * Observations In the 1980’s union wages stabilized relative to non-union wages. In the 1990’s membership has been falling and wage differential has remained stable. The Decline of Private Sector Unionism Chapter 14 Slide * Explanation The unions have been attempting to maximize the individual wage rate instead of total wages paid. The demand for unionized employees has probably become increasingly elastic as firms find it easier to substitute ca