The presence of a union tends to raise the wage for insiders and lower the wage for outsiders.

Question

Quizplus · Accepted Answer

Unions negotiate higher wages and benefits for their members, which benefits the insiders or union members. However, this can make it harder for outsiders, or non-union workers, to get jobs or negotiate comparable pay and benefits. As a result, the presence of a union can lead to a wage gap between insiders and outsiders.

The Presence of a Union Tends to Raise the Wage