What are the comments of unions effect on the workers wages? Free Essay, Term Paper and Book Report
The debates of the social effects of unionism have lasted for more than 200 years. Many economists argue that unions are monopolies in the labor market while others say that unions can benefit economic and political issues. Over the last decades, the negative comments on unions are more prevalent (Freeman 1984b). For example, some argue that the union wage effect can contribute to the overall inflation. The debates that the union negotiated wage can directly and significantly lead to inflation have lasted for decades. Although there is little evidence to prove this statement, political actions have been administered to limit the union wage effect regarded as a cause of inflation. A good case in point is that in October 1979, the U.S. Carter administration legally limits the maximum of annual salary raise to7 percent (Estey 1981). There are other comments about the unions. This essay will focus on the union wage effect and examine where union wage effect can result in wage inequality as some argued (Friedman 1962, Freeman 1984a). More specifically, it will in turn discuss the necessit......
Word Count: 1722
Page Count: 6.8 (250 words a page / double spaced)
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