Labor Economics
7th Edition
ISBN: 9780078021886
Author: George J Borjas
Publisher: McGraw-Hill Education
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Question
Chapter 10, Problem 11RQ
To determine
Exit-voice hypothesis and the implication of hypothesis on the productivity.
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Students have asked these similar questions
What is the exit-voice hypothesis? What is the implication of this hypothesis for the observed productivity of workers in unionized firms?
Which of the following statements is most accurate?
Unionization almost always results in improvements to workplace productivity
The effects of unionization on productivity are mixed; sometimes it results in an increase and sometimes it results in a decrease
Unionization generally has no effect on workplace productivity
Unionization almost never results in improvements to workplace productivity
Today the strongest segment of unionization is:
Militant workers
Public sector workers
Craft workers
Industrial workers
Chapter 10 Solutions
Labor Economics
Ch. 10 - Prob. 1RQCh. 10 - Prob. 2RQCh. 10 - Prob. 3RQCh. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - Prob. 7RQCh. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - Prob. 10RQ
Ch. 10 - Prob. 11RQCh. 10 - Prob. 12RQCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Major League Baseball players are not eligible for...Ch. 10 - Prob. 15P
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Similar questions
- Suppose that the representative worker’s utility function takes the form = . Show that, if the union maximises expected utility, and unions and firms bargain according to the monopoly union model, the equilibrium level of employment declines as the value of the parameter γ increases.arrow_forwardSuppose the economy consists of a union and a nonunion sector. The labor demand curve in each sector is given by L = 1,000,000 - 20w. The total (economywide) supply of labor is 1,000,000, and it does not depend upon the wage. All workers are equally skilled and equally suited for work in either sector. A monopoly union sets the wage at $30,000 in the union sector. What is the union wage gap? What is the effect of the union on the wage in the nonunion sector?arrow_forwardTrue or False? Union wages are similar to those in a perfectly competitive market. The wage is determined by the going rate for the position.arrow_forward
- What is the principle strategy of an inclusive (industrial) union in order to increase the wages of its members?arrow_forwardSuppose the firm’s labor demand curve is given by w = 20 - 0.01E where w is the hourly wage and E is the level of employment. Suppose also that the union’s utility function is given by U = w * E It is easy to show that the marginal utility of the wage for the union is E and the marginal utility of employment is w. What wage would a monopoly union demand? How many workers will be employed under the union contract?arrow_forwardtrue or false Labor unions are organized primarily to help women who are expecting to go into labor while on the job.arrow_forward
- Under the Wagner Act (NLRA), the only time workers are entitled to union representation is when the union has the support of the majority of workers at the workplace. False Truearrow_forwardDiscuss how unions increase wage rates by pursuing the demand-enhancement model, the craft union model, or the industrial union model.arrow_forwardExplain the decline in unionism based on the following hypotheses: i) Structural-change hypothesis ii) Substitution hypothesis Discuss briefly the following statement: "Labour unions have positive and negative impacts on the investment of firms."arrow_forward
- Describe the wage-employment outcome in a model of monopoly unionism. Explain why (and in what sense) this wage-employment outcome is inefficient.arrow_forwardThe fact that public sector goods and services are not bought and sold in a competitive labor market makes unionization ineffective. False Truearrow_forwardPart I: Suppose the firm's labor demand curve is given by: w = 60 – 0.03E where w is the hourly wage andE is the level of employment. Suppose also that the union's utility function is given by: U = w x E The marginal utility of the wage for the union is E and the marginal utility of employment is w. (a) How many workers will be employed under a monopoly union contract? (b) What wage would a monopoly union demand?arrow_forward
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