Theory of Input Markets and Labor Market Issues
Short essay question:
According to the short assigned reading of articles and videos from Module 11, particularly “What’s Behind Union Decline?”, and both “How Unions Help Cocktail Servers”, and “Reagan vs. Patco – The Strike that Busted Unions”, you learned labor unions in the U.S. have declined more than in other countries (including the United States” more globalized” neighbor to the north).
Using the content of these above articles which in part discuss the differences between institutions and policies in in the U.S. and different countries and their effects on the balance of power between workers and employers, as compared to and within the U.S. explain:
a. Why have the number of workers represented by unions fallen in the United States over the last few decades?
b. And, Is globalization by itself, a plausible explanation for the drop in the number of workers represented by unions in the United States over the last few decades; and, if not briefly discuss another explanation discussed in the material from module 11 (opens next week)?
Write a concise answer and use concepts of balance of power, collective bargaining, bargaining power of American workers, income stagnation, long term consequences, unionized sectors, employer offensive, negotiations, strikes and costs for both the employer and union, seniority, wages and health care benefits, equal gender pay and the pay gap, traditional strongholds, etc. as explained in the articles, videos, other reading, and the textbook.
