Many nonunion companies offer higher compensation than they would if unions were nonexistent.What is this phenomenon called?
A)progressive compensation
B)the spillover effect
C)concessionary bargaining
D)inter-industry compensation differentials

Question

Quizplus · Accepted Answer

The spillover effect refers to the phenomenon where nonunion companies offer higher wages or better benefits in part to avoid unionization by making the union's offer less attractive. This can happen because the presence of unions in an industry or region sets a higher standard for wages and benefits that nonunion employers may feel compelled to match or exceed to attract and retain employees.

Many Nonunion Companies Offer Higher Compensation Than They Would If