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Impact of Trade Union on labour market

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    • Thread Starter

    Hey guys, I am trying to do this question but quite stuck on it: "Analyse how a trade union can influence wages and employment levels in an imperfectly competitive labour market".
    I know that raising wages in a perfectly competitive labour market will cause unemployment, but how about an imperfectly competitive market? I have looked up different diagrams on Internet, but they all vary.
    How will Trade Union reduce supply of labour and make the supply more inelastic?
    Thanks for your help

    it is limiting supply of labour through the threat of a strike.

    Impact of a TU also has some variables too:

    Penetration of the trade union in the workforce
    Legislation limiting trade union power
    Misaligned views between the trade union and what the workforce really want
    and so on...
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