Unions might support a higher minimum wage because
A) their constitutions obligate them to do so.
B) they feel a higher minimum wage will lower labor's tax payments for welfare programs.
C) a higher minimum wage makes less-skilled workers less substitutable for union workers.
D) the minimum wage is better targeted than are alternative income-maintenance programs.

Question

Quizplus · Accepted Answer

Unions may support a higher minimum wage because it reduces the number of low-skilled workers who could compete with unionized workers, making them less substitutable. This means unions could bargain for higher wages and benefits for their members without fear of being replaced by cheaper, low-skilled workers.

Unions Might Support a Higher Minimum Wage Because