12 : Factors That Affect Flexibility In Labour Markets Flashcards
What are trade unions?
They are organizations that aim to protect the interests of workers
(They can effect the wage rates by improving productivity using their industrial power and restricting supply )
What is meant by union density
It is the percentage number of worker in a profession that are part of a union. The higher the percentage density the greater power for union
What is meant by union mark up
It is the difference in wage between workers who are part of a union and workers who are not
- (the bigger the difference the more successful the union is )
Why are unions more likely to succeed when the economy is in a period of strength not who there is a recession?
Because in a boom period firms are more willing to increase wages when revenue and profits are strong
What is meant by monopsony labour market
It is when workers are being paid below the competitive wage.
trade unions can increase this wage this may cause improve economic efficiency, lower costs of production for firms
