ECON 200 Lecture Notes - Lecture 40: Efficiency Wage, Company Town, National Labor Relations Act
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ECON 200 Full Course Notes
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The wagner act of 1935 prevents employers from interfering when workers try to organize unions and requires employers to bargain with unions in good faith. The national labor relations board (nlrb) is the government agency that enforces workers" right to unionize. Right-to-work laws, which give workers in a unionized firm the right to choose whether to join the union. Economists disagree about whether unions are good or bad for the economy as a whole. Company town, where a single firm does most of the hiring in a geographical region. By representing workers" views on these issues, unions allow firms to provide the right mix of job attributes. Efficiency wages - above-equilibrium wages paid by firms to increase worker productivity. According to this theory, firms operate more efficiently if wages are above the equilibrium level. Assumes that higher wages will result in higher productivity.
