Authors libby rittenberg 765

One way that unions can increase the marginal product of their members is by encouraging investment in their human capital Consequently, unions may pressure firms to implement training programs Some unions conduct training efforts themselves Another way to increase the MRP of a factor is to reduce the use by firms of substitute factors Unions generally represent skilled workers, and they are vigorous proponents of minimum wage laws that make unskilled workers more expensive A higher minimum wage induces firms to substitute skilled for unskilled labor and thus increases the demand for the skilled workers unions represent Still another way to increase the MRP of labor is to increase the demand for the products labor produces The form this union activity generally takes is in the promotion of “Made in the U.S.A.” goods Unions have also promoted restrictive trade legislation aimed at reducing the supply of foreign goods and thus increasing the demand for domestic ones Reducing Labor Supply Unions can restrict the supply of labor in two ways First, they can seek to slow the growth of the labor force; unions from the earliest times have aggressively opposed immigration Union support for Social Security also cut the labor supply by encouraging workers to retire early Second, unions can promote policies that make it difficult for workers to enter a particular craft Unions representing plumbers and electrical workers, for example, have restricted the number of people who can enter these crafts in some areas by requiring that workers belong to a union and then limiting the union’s membership Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 765