Critics of unions argue that unions cause the allocation of labor to be inefficient and inequitable.

Question

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Critics argue that unions can lead to inefficiencies in labor markets by pushing wages above market levels, leading to potential unemployment or misallocation of labor. They also argue that unions can create inequities by favoring insider workers (union members) over outsiders (non-union members), potentially leading to disparities in employment opportunities and wages.

Critics of Unions Argue That Unions Cause the Allocation of Labor