When some non-union employers raise wages in order to reduce the possibility that their employees will choose to become unionized, it is called:

Question

Quizplus · Accepted Answer

The threat effect occurs when non-union employers raise wages to deter their employees from unionizing, as they perceive the potential formation of a union as a threat to their current wage structure and management practices. This preemptive increase in wages is aimed at reducing the attractiveness of unionization to employees by directly addressing one of the main incentives for unionizing: higher wages.

When Some Non-Union Employers Raise Wages in Order to Reduce