What is an industrial effect of unions on pay level?
A) Union workers are paid lesser than nonunion workers on an average.
B) Industries having highest union wage premium had the lowest employment decrease in the 1970s.
C) Unions are able to bargain larger-than-normal increase in firms that created specific assets.
D) Wage premiums come with cost to labor making the firms less profitable.

Question

Quizplus · Accepted Answer

Unions have the ability to negotiate higher wages, especially in firms that have invested in specific assets that are unique to their operations, making it more costly for these firms to replace their workforce. This bargaining power can lead to larger-than-normal wage increases for unionized workers.

What Is an Industrial Effect of Unions on Pay Level