Chapter 28 Lecture Notes I. Productivity/Markets Determine Wages
IV. Unions
V. Craft Unions vs. Industrial Unions
9/24/22 Please link to and share.\
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Political Economy Stuff
Wage Stagnation
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Lecture Notes
I. Productivity, Markets Determine Wages
C. Wage determination models
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Political Economy Stuff Workers Get More than Advertised.
Middle Class Wages 2. Krugman on the Need for Jobs Policies
3.
Worker wage inequality myth exposed
 
4. Labor's Share is Getting Smaller, but people work less.
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E.
Monopsony Model from Wiki
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IV. Unions A. Introduction 1. A union is an organization of workers selling their services collectively. 2. Unions have many goals. a. Primary goal of higher income is becoming less important. b. Recent emphasis has been on employment security. B. Methods of achieving higher wages. 1. Increase demand (MRPL) for labor a. Increase product demand 1) Advertising the union label 2) Sponsoring trade restrictions such as tariffs and quotas b. Increase the productivity of workers 1) Encourage cooperation with labor- management committees 2. Negotiate worker training and education programs 2. Control the supply of workers hired a. Require apprenticeships, licenses Open Markets Institute. Chart: Axios Visuals b. Restrict immigration and child labor c. Encourage shorter workweek and family leave programs d. Keep jobs management wants to eliminate (featherbedding) e. Require closed shops which limit hiring to union members f. Require union shops where new workers to join after a set period g. Against open shops where all may work, joining union is voluntary C. Wagner Act National Labor Relations Act of 1935 became known as the "Magna Charta" of laborbecause it increased union power. 1. It made company-sponsored unions illegal, stopped company interference with unionizing activity (strikes), prohibited discrimination against union members, and required companies to bargain in good faith. 2. National Labor Relations Board set up to investigate/stop unfair labor
D. Taft
Hartley Act of 1947
decreased union power. trying to represent workers 2. U.S. Strikes, Lockouts Remained Near Record Lows in 2010 2/8/11 3. Is the Supreme Court Killing Unions 7/11/14 4. Most people work just hard enough not to get fired and get paid just enough money not to quit. George Carlin Read more at George Carlin 5. Lets Remember What Unions Have Done for America has extensive information and links 6. Union movement misses big opportunity to halt its decline Economist Magazine 2/22/14
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Who Occupational Licensing
Data: Open Markets Institute. Chart: Axios Visuals Occupational Licensing Linked To Less Economic Mobility
Labor Power is Down
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A. Craft Unions 1. Organized in 1886 by Samual Gompers as American Federation of Labor -AFL a. Each trade was autonomous b. Union was not political. 2. Skilled workers were organized. 3. High skill requirements naturally limited supply and unions tried to reinforce limited supply. 4. Tried to shift supply of workers to the left with licensing, apprenticeships, child laborlaws, etc. to increase wages. B . Inclusive Industrial Union1. Congress of Industrial Organizations (CIO) was organized in 1936 John L. Lewis who broke with the AFL because mass production workers need a their own organization. See Decline and resurgence of the U S auto industryWalter P. Reuther Library 2. Unskilled workers were organized. 3. Limited skills make limiting supply impractical. 4. Controlled supply of workers andemphasized collective bargaining to increase wages.
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Do Private Sector Unions Still Have a Future in the US The Washington Post By Brad Plumer, 6/13/13
Readings The Intercept interviewed former EPI President Larry Mishel on the labor movement’s plans to shift the balance of power back to workers in 2018 and 2020. Mishel said the “Better Deal” package of reforms unveiled by congressional Democrats in 2017 includes some “seriously bold” ideas, including a ban on the permanent replacement of striking workers. | EPI’s Heidi Shierholz explained to Vice News why President Trump can’t claim that his tax cuts for corporations will create jobs. Corporations already have record-high levels of cash they could be investing in job creation. “You’re encouraging companies to hire workers based on incentives that they already have,” said Shierhols an extraordinarily inefficient way to create jobs.” | Trump is Taking Credit for a Thriving Economy He Had Nothing to do With »
A number of specific policy actions could help revitalize wage growth: |
A. A minimum wage is a price floor put on wages to stop them from falling below some legislated level.
B. The result may be
a surplus of workers a shortage of workers. The Economist 11/24/12 D. Employment Elasticity to Minimum Wage See How Much Did The Minimum Wage Drive Real Wage Growth During The Late 2010s? Minimum-Wage IncreasesReverse Post-Recession Wage-Declines for Lowest Paid-Jobs |
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A. Wages are determined by
marginal revenue product so I. Politics Counts |