Labor Economics
7th Edition
ISBN: 9780078021886
Author: George J Borjas
Publisher: McGraw-Hill Education
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Question
Chapter 10, Problem 9P
(a)
To determine
Problems addressed by the legislative changes.
(b)
To determine
Changes in the demand curve of the government and the indifference curve of the union.
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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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- The following graph illustrates the labor market for the state in the West. The government in this state passes a strong "right-to-work" law that makes it much more challenging for unions to organize workers, so the wage is always equal to the market-clearing value. With the lone exception of this legal difference, assume the two states to be extremely similar. Initially, the graph corresponds to the labor market conditions in the western state prior to the labor union negotiating the new, higher wage for eastern state workers. Adjust the graph to show what happens to employment and wages in the western state after some workers in the eastern state lose their jobs and choose to move to the western state. WAGE Labor Market in the West I LABOR Supply Demand Demand Supply (?)arrow_forwardWhich of the following statements is correct? a. Most adults in the US are forced to sell their labor power, for a wage or salary, because they have no other means of earning a living. b. Employers are normally in a more powerful position, than workers, when bargaining over wages. c. The employer’s power decreases as unemployment increases. d. All of the above are correct. e. Both a and b are correct. f. Both a and c are correct. g. Both b and c are correct. h. None of the above is correct.arrow_forwardThe following graph illustrates the labor market for the state in the West. The government in this state passes a strong "right-to-work" law that makes it much more challenging for unions to organize workers, so the wage is always equal to the market-clearing value. With the lone exception of this legal difference, assume the two states to be extremely similar. Initially, the graph corresponds to the labor market conditions in the western state prior to the labor union negotiating the new, higher wage for eastern state workers. Adjust the graph to show what happens to employment and wages in the western state after some workers in the eastern state lose their jobs and choose to move to the western state.arrow_forward
- Contrasting labour union laws in two provinces Please check the graphs as well. Consider two provinces that adopt different laws concerning labour unions. The following graph shows the labour market in a province in the West. Initially, the market-clearing wage is $10 per hour. Suppose that the legislature in this western province passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $16 per hour. Use the black point (plus symbol) to show how many union workers will be employed at the $16 wage. (Hint: Be sure to place the point on the appropriate curve.) The following graph shows the labour market in a province in the East. The legislature in this province passes "strong right-to-work laws" that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, the two provinces are very similar. The initial position of…arrow_forwardExplain why unions have been slow to embrace environmental issues? What has been done to change this? 1. What is a key demographic trend you believe is influencing national or international unions in the 21st century? 2. 3. What are some of the characteristics of Canadian union membership and what is the significance of these features? 4. What is union density and why is this measure important? Some argue that high-performance work practices, nonunion representation, and nonstandard work practices are designed to be forms of union substitution and/or union avoidance. Do you feel this is true? Why or why not? 5. Assume you are a labour leader and that you are trying to organize a nonunion firm that has high-performance work practices and nonunion employee representation practices in place. What would you tell employees are the advantages of unionization even with these progressive HRM practices 6. Given the number of multinational companies and companies that operate in both Canada and…arrow_forwardWhat is the most important federal employee protection in place today?arrow_forward
- (a) Would you expect unionization to cause wages to increase, decrease, or remain the same relative to a non-unionized labor equilibrium? (b) Would you expect unionization to cause the quantity of labor employed to increase, decrease, or remain the same relative to a non-unionized labor equilibrium? (c) Offer two ways that unions can increase worker productivity.arrow_forwardWhat are strategies that can be used to ensure the erosion of unions do not happen? If firms pay more for union costs, will the organization be driven to international production of their goods? Lastly, are labor unions a thing of the past?arrow_forwardThe town of Bookville has a massive public library system. Bookville's municipal government faces a tradeoff between retaining the current number of library workers and replacing some of its workers with computers. The four options available to the government are given in table below. Number of workers Number of computers Choice A 30 50 Choice B 20 100 Choice C 10 150 Choice D 5 300 Computers and software cost $5,000 each and must be replaced each year. In a non-unionized labor market, workers are paid $20,000 per year. In these circumstances, the optimal choice from a cost perspective for the city government is Question 4 options: Choice A Choice B Choice C Choice Darrow_forward
- Enter $10.00 into the box labeled Wage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. At the union wage, union workers will be employed. The following graph shows the labor market in a state in the East. Suppose the legislature in this state passes strong "right-to-work" laws that make it very difficult for unions to organize workers, so the wage is always equal to the market-dearing value. Assume that with the exception of this difference in legislation, the western and easter states are extremely similar. The initial position of the graph corresponds to the initial labor market condition in the eastern state before the labor union negotiated the new, higher wage for workers in the western state. Suppose that after the wage goes up in the western state, some workers in the western state lose their jobs and decide to move to the eastern state. Adjust the graph to show what happens to employment and wages in the eastern state. WAGE LABOR Supply…arrow_forwardDo you think that labor unions in this country have too much power or too little power?arrow_forwardWhich of the following is not a way that the government has influenced labor in the United States? A. Requirement that men and women should be paid the same amount for the same job B. Minimum wage law that sets the baseline for what employees can be paid C. Requirement that a private company cannot fire an employee without just cause D. Requirement that employers must treat all workers equally regardless of race, gender, or religionarrow_forward
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