Nonunion wages should be modeled as
A)sticky,because they imitate union wages rather closely.
B)sticky,because their contracts cannot contain COLA clauses.
C)perfectly flexible,because wage contracts are illegal outside of unions.
D)perfectly flexible,because workers willing to take the risks of full wage flexibility are precisely those workers who have rejected unionization.

Question

Quizplus · Accepted Answer

Nonunion wages tend to be sticky because they often imitate union wages, which are typically more rigid due to collective bargaining agreements. This imitation occurs as nonunion employers may adjust their wages in response to union wage trends to remain competitive in attracting and retaining employees.

Nonunion Wages Should Be Modeled as