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    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
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    it is limiting supply of labour through the threat of a strike.
    http://3.bp.blogspot.com/_4geW7hBMBf...TradeUnion.jpg
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    Welcome Squad
    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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