Answered: What is the exit-voice hypothesis? What…

What is the exit-voice hypothesis? What is the implication of this hypothesis for the observed productivity of workers in unionized firms?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Wages, Unions, And Labor

Section: Chapter Questions

Problem 3WNG

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Which of the following statements is most accurate? Unionization almost always results in improvements to workplace productivity The effects of unionization on productivity are mixed; sometimes it results in an increase and sometimes it results in a decrease Unionization generally has no effect on workplace productivity Unionization almost never results in improvements to workplace productivity
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Suppose that the representative worker’s utility function takes the form = . Show that, if the union maximises expected utility, and unions and firms bargain according to the monopoly union model, the equilibrium level of employment declines as the value of the parameter γ increases.
Suppose the economy consists of a union and a nonunion sector. The labor demand curve in each sector is given by L = 1,000,000 - 20w. The total (economywide) supply of labor is 1,000,000, and it does not depend upon the wage. All workers are equally skilled and equally suited for work in either sector. A monopoly union sets the wage at $30,000 in the union sector. What is the union wage gap? What is the effect of the union on the wage in the nonunion sector?
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What is the principle strategy of an inclusive (industrial) union in order to increase the wages of its members?
true or false Labor unions are organized primarily to help women who are expecting to go into labor while on the job.
Suppose the firm’s labor demand curve is given by w = 20 - 0.01E where w is the hourly wage and E is the level of employment. Suppose also that the union’s utility function is given by U = w * E It is easy to show that the marginal utility of the wage for the union is E and the marginal utility of employment is w. What wage would a monopoly union demand? How many workers will be employed under the union contract?
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