Lecture 24-Labour Markets

44 views4 pages
1 Aug 2010
School
Department
Course
Professor
Thursday, January 14, 2010. Labour Markets
Impact of Union
Union raises wage rate (Wu > W c)
Union reduces employment (Nu < Nc) in this industry
Note: union may try to increase jobs by shifting DD to right (support import restrictions,
encourage members to purchase union made goods)
Implication of Profit-Maximizing Behaviour
W = VMP
Perfect Competition: VMP = P * MP
Imperfect Competition: VMP = MR * MP
:KDWIDFWRUV³FRUUHODWHV´DUHDVVRFLDWHGZLWKKLJK903RIZRUNHUV"
Correlates of VMP
Education
Males, 2001, Full-Time
High School: $41,218
College: $49,224
University: $71,352
Wc
SS
DD (= VMP)
Wu
u = union
c = competitive
market
W
Nu
Nc
www.notesolution.com
Unlock document

This preview shows page 1 of the document.
Unlock all 4 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Notes+

Unlimited access to class notes and textbook notes.

YearlyBest Value
75% OFF
$8 USD/m
Monthly
$30 USD/m
You will be charged $96 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.