When unions raise wages beyond what productivity increases would permit,
A) more union workers are employed.
B) there are higher wages for all union members.
C) there is a redistribution of income from low- to high-seniority workers.
D) nonunion workers wages in the economy also increase.

Question

Quizplus · Accepted Answer

When unions raise wages beyond what productivity increases would permit, the result is a redistribution of income from low- to high-seniority workers. This means that workers with higher levels of experience or seniority within the union will benefit from higher wages, while newer or lower-level employees may miss out on the same wage increases. It is important to note that these wage increases are typically limited to union members only, so non-union workers wages in the economy will not be affected.

When Unions Raise Wages Beyond What Productivity Increases Would Permit