Which theory of economic discrimination states that union members earn higher wages than nonunion members, leading to a wage differential?

Question

Quizplus · Accepted Answer

The insider-outsider theory explains economic discrimination by suggesting that those within a group (insiders, such as union members) have advantages over those outside the group (outsiders, such as nonunion members), leading to wage differentials. This theory specifically addresses the dynamics between unionized and nonunionized workers, where insiders (union members) may earn higher wages compared to outsiders (nonunion members).

Which Theory of Economic Discrimination States That Union Members Earn