Copyright 2008 The McGraw-Hill Companies 22-1 Unionism in America Collective Bargaining Economic...
25
Copyright 2008 The McGraw-Hill Companies 22-1 Unionism in America Collective B argaining Economic Eff ects of Unio ns Labor Market Discriminat ion Economic Ana lysis of Dis crimination Antidiscrimi na-tion Pol icies and Is sues Immigration Last Word Key Terms End Show 22 Labor Market Institutions and Issues: Unionism, Discrimination, and Immigration
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Transcript of Copyright 2008 The McGraw-Hill Companies 22-1 Unionism in America Collective Bargaining Economic...
Copyright 2008 The McGraw-Hill Companies22-1
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
22Labor Market Institutions and Issues: Unionism, Discrimination, and Immigration
Copyright 2008 The McGraw-Hill Companies22-2
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Chapter Objectives• Who Belongs to U.S. Unions;
the Basics of Collective Bargaining; Why Unions are in Decline; and the Effects of Unions on Wages, Efficiency and Productivity
• The Types and Costs of Discrimination, Economic Theories of Discrimination, and Current Antidiscrimination Issues
• The Extent and Effects of U.S. Immigration
Copyright 2008 The McGraw-Hill Companies22-3
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Unionism In America• AFL-CIO• Independent Unions• Business Unionism• Union Membership• The Decline of Unionism
–Structural-Change Hypothesis
–Managerial-Opposition Hypothesis
Copyright 2008 The McGraw-Hill Companies22-4
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Unionism In AmericaUnion Membership as a Percentage of the Employed Labor Force, Selected Nations
DenmarkSweden
ItalyAustraliaGermany
United KingdomHungary
United StatesSouth Korea
France
0 20 40 60 80 100
Source: Statistical Agencies in Individual Countries, Latest Data
12.5%
Copyright 2008 The McGraw-Hill Companies22-5
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Unionism In AmericaPercentage Unionized by Industry in 2005
GovernmentTransportation
TelecommunicationsConstruction
ManufacturingMining
Retail TradeAgriculture
FinanceTotal U.S. Workers
0 20 40 60 80 100
Source: Bureau of Labor Statistics
2.7%1.6%
5.2%
8.0%13.0%13.1%
21.4%
23.4%36.5%
12.5%
Copyright 2008 The McGraw-Hill Companies22-6
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Unionism In AmericaPercentage Unionized by Occupation in 2005
TeachersProtective Services
Transportation WorkersProduction Workers
Social WorkersLegal Workers
ManagersFood WorkersSales Workers
Total U.S. Workers
0 20 40 60 80
Source: Bureau of Labor Statistics
4.3%3.3%
4.4%
5.6%16.5%17.1%
19.0%
37.0%38.5%
12.5%
Copyright 2008 The McGraw-Hill Companies22-7
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Collective Bargaining• The Work Agreement
–Union Status and Management Prerogatives• Closed Shop• Union Shop• Agency Shop• Right-to-Work Laws• Open Shop
–Wage and Hours• Cost of Living Adjustments
(COLAs)• Seniority and Job Protection• Grievance Procedures
Copyright 2008 The McGraw-Hill Companies22-8
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Collective Bargaining• The Bargaining Process
–Demands–Bargaining in Good Faith–Strike–Lockout–National Labor Relations
Act (NLRA)–National Labor Relations
Board (NLRB)
Copyright 2008 The McGraw-Hill Companies22-9
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Effects of Unions• The Union Wage
Advantage• Efficiency and Productivity
–Negative View• Losses via Featherbedding
and Work Rules• Losses via Strikes• Losses via Labor
MisallocationGraphically…
Copyright 2008 The McGraw-Hill Companies22-10
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Effects of UnionsEffects of the Union Wage Advantageon the Allocation of Labor
Sector 1Union
Sector 2Nonunion
Employment Employment
Wag
e R
ate
Du = MRP Dn = MRP
Wu
Wn Wn
WsWag
e R
ate
N1N2 N1 N30 0
A
B
C
D
E
Area B Represents Misallocation of Labor and Decline IN Economic Efficiency
Copyright 2008 The McGraw-Hill Companies22-11
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Effects of Unions• Efficiency and Productivity
–Positive View• Longer-Run Positive Impacts: The Shock-Effect
• Reduced Worker Turnover–Exit Mechanism–Voice Mechanism
• Increased Informal Training
• Mixed Research Findings
Copyright 2008 The McGraw-Hill Companies22-12
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Labor Market Discrimination
• Types of Discrimination–Wage Discrimination
–Employment Discrimination
–Occupational Discrimination
–Human Capital Discrimination
• Costs of Discrimination
Copyright 2008 The McGraw-Hill Companies22-13
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Labor Market DiscriminationDiscrimination and Production Possibilities
Cap
ital
Go
od
s
Consumer Goods
0
Kd
Cd
X
Y
Z
DiscriminationCauses a Failure toAchieve ProductiveEfficiency
EfficientCombinations
D
Copyright 2008 The McGraw-Hill Companies22-14
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Analysis of Discrimination
• Taste-for-Discrimination Model
–Discrimination Coefficient
–Prejudice and the Market African-American-White Wage Ratio
–Competition and Discrimination
O22.1
Copyright 2008 The McGraw-Hill Companies22-15
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Analysis of Discrimination
Taste for Discrimination Model
Afr
ican
-Am
eric
an W
age
Rat
e(D
oll
ars)
African-American Employment (Millions)
0
D3
D2
D1
S
12 16 18
6
$9
8
MoreDiscrimination
LessDiscrimination
Copyright 2008 The McGraw-Hill Companies22-16
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Analysis of Discrimination
• Statistical Discrimination–Labor Market Example–Profitable, Undesirable, but
Not Malicious• Occupational Segregation:
The Crowding Model–The Model–Effects of Crowding
Graphically…
Copyright 2008 The McGraw-Hill Companies22-17
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Analysis of Discrimination
Wag
e R
ate
Wag
e R
ate
Wag
e R
ate
B BBM M
W
3 4 3 4 64
Dx Dy Dz
Occupation X Occupation Y Occupation Z
Economics of Occupational Segregation
Quantity of Labor(Millions)
Quantity of Labor(Millions)
Quantity of Labor(Millions)
By Crowding Women Into One Occupation (Z)…
Men Enjoy Higher Wages in the Other Occupations (X and Y)
000
Eliminating Occupational Segregation
Copyright 2008 The McGraw-Hill Companies22-18
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Antidiscrimination Policies and Issues
• Equal Pay Act 1963• Title VII of the Civil Rights
Act of 1964• Affirmative Action
Requirement–Supportive View–Opposing View
• Reverse Discrimination
• Recent Developments
Copyright 2008 The McGraw-Hill Companies22-19
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Immigration• Legal Immigrants• Unauthorized
Immigrants• Economics of
Immigration–Wage Rates and World
Output–Income Shares
G22.1
Copyright 2008 The McGraw-Hill Companies22-20
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
GLOBAL PERSPECTIVE
ImmigrationU.S. Immigrants by Country of Origin, 2004
Mexico
India
Philippines
China
Russia
Vietnam
Dominican Republic
El Salvador
Canada
South Korea
0 30 60 90 120 150 180 210
65,472
54,632
45,942
36,646
30,064
30,049
29,285
23,437
19,441
176,664
Source: U.S. Citizenship and Immigration Services
Copyright 2008 The McGraw-Hill Companies22-21
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
ImmigrationThe Simple Economics of Immigration
Wag
e R
ate
United States Mexico
Quantity of Labor(Millions)
Quantity of Labor(Millions)
DuDm
a
A
bd D
B
We
Wag
e R
ate
We
c f F C
Wu
0 0
Wm
Immigration to the United States Impacts Jobs and Wage Rates
Copyright 2008 The McGraw-Hill Companies22-22
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Immigration• Complications and
Modifications–Costs of Migration
–Remittances and Backflows
–Full Employment versus Unemployment
–Fiscal Impacts
• Immigration: Two Views
Copyright 2008 The McGraw-Hill Companies22-23
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Allegations of Discrimination in Hiring of Women in Major Symphony Orchestras
Orchestrating Impartiality
• “Blind” Auditions by Hiding Candidates behind Screens
• 1970 Only 5% Were Women• Screened Auditions Increased
Probability of a Woman Hiring by 50%
• Without Screens Was Only 10% But With the Screens 35%
• Today About 25% of Top Orchestra Members Are Women
• Directors Demonstrated a Clear Bias Toward Men in Hiring
Last
Word
Copyright 2008 The McGraw-Hill Companies22-24
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Key Terms• American Federation of Lab
or and Congress of Industrial Organizations (AFL-CIO)
• independent unions• business unionism• structural-change hypothesi
s• managerial-opposition hypo
thesis• collective bargaining• closed shop• union shop• agency shop• right-to-work laws• open shop• cost-of-living adjustments (
COLA)• strike• lockout• National Labor Relations Ac
t (NLRA)
• National Labor Relations Board (NLRB)
• exit mechanism• voice mechanism• labor market discrimination• wage discrimination• employment discrimination• occupational discrimination• human capital discriminatio
n• taste-for-discrimination mod
el• discrimination coefficient• statistical discrimination• occupational segregation• affirmative action• reverse discrimination• legal immigrants• unauthorized immigrants
Copyright 2008 The McGraw-Hill Companies22-25
Unionism in AmericaCollective BargainingEconomic Effects of UnionsLabor Market DiscriminationEconomic Analysis of DiscriminationAntidiscrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
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