When unions exert a great deal of influence,the effect on labor markets is similar to that of a minimum wage.

Question

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Both unions and minimum wages can lead to higher wages and benefits for workers, but they can also result in decreased demand for labor and higher unemployment. When unions have significant bargaining power and are able to negotiate high wages and benefits for their members, it can make it more expensive for employers to hire union workers, leading them to hire fewer workers overall. Similarly, when minimum wages are set at a high level, it can make it more expensive for employers to hire workers, leading them to hire fewer workers or cut back on hours.

When Unions Exert a Great Deal of Influence,the Effect on Labor