If workers in one part of the labor market unionize, then all else equal, we would expect the wages of unionized workers to ________, and the wages of nonunionized workers to ________.

Question

Quizplus · Accepted Answer

If the union is successful at bargaining for higher wages, then the quantity of workers demanded in that part of the labor market will fall. As a result, workers will move into the nonunionized sector, thereby pushing wages in that sector down.

If Workers in One Part of the Labor Market Unionize