In an effort to reduce the likelihood of unionization, a nonunion pool pays lifeguards $13.00 per hour. The unionized pools pay $11.00 an hour. What is this an example of?
A) spillover effect
B) union effect
C) threat effect
D) wage differential effect

Question

Quizplus · Accepted Answer

This is an example of the threat effect, where the nonunion pool pays higher wages in an effort to discourage lifeguards from unionizing and seeking even higher wages and benefits through collective bargaining.

In an Effort to Reduce the Likelihood of Unionization, a Nonunion