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
Impact of Trade Union on labour market watch
- Thread Starter
- 15-04-2016 16:51
- 15-04-2016 20:20
it is limiting supply of labour through the threat of a strike.
- Welcome Squad
- 20-04-2016 22:03
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...