Labor unions are able to maintain _____ wages for union members by _____ the market.

Question

Quizplus · Accepted Answer

Labor unions maintain above-equilibrium wages for their members by excluding some workers from the labor market. This is done through collective bargaining, strikes, and negotiations with employers to set higher wages for union members. By setting higher wages, the demand for union labor decreases, causing some non-union workers to be excluded from the market, therefore creating an artificial scarcity for union jobs. This results in the union members receiving higher wages than they would in a competitive market.

Labor Unions Are Able to Maintain _____ Wages for Union