Introduction to Labor Economics Graphs and Tables Handout #3-Part 2

Table D-2.1: Private Sector Union Membership, Year Union Members Market Share Year Union Members Market Share , %195013,550, % ,923, %195515,341, % ,109, %196016,907, % ,508, %196516, % ,664, %197018,295, % ,495, %197518,210, % ,482, %198015,273, % ,337, %198511,226, % ,848, %199010,247, % ,674, %1991 9,898, %

Table D-2.1: Private Sector Union Membership, Year Union Members Market Share Year Union Members Market Share 19929,703, % 19939,554, % 19949,620, % 19959,400, % 19969,385, % 19979,363,0009.8% 19989,306,0009.5%

Figure D-2.1: US Private Sector Union Density

Figure D-2.2: Union Membership among Public and Private Sector Workers,

Figure D-2.3: The Regular Labor Market Employers Workers Cooperation Competition

Figure: D-2.4: The Unionized Labor Market Employers Workers Quasi- Cooperation Competition Union Non-union Adversarial Unionized Non-unionized (Potential for Violence) (NLRB Ban on Company Unions)

Figure D-2.5: Unions as Monopolist-The Craft Union Model ScSc SmSm D L W w c w m L c L m Rent Welfare Loss

Figure D-2.6: Unions as Monopolist-The Industrial Union Model W L ScSc D w c w m L m L c L 0 Rent Welfare Loss

Figure D-2.7: Effects of Elasticity on Ability of Unions to Raise Wages W L W L D0D0 D1D1 (a)More Elastic, Difficult to Raise Wages (b) Less Elastic, Easier to Raise Wages $20 $22 $10 $ S0S0 S1S1 S1S1 S0S0

Figure D-2.8: The Spillover Model Union Market Non-Union Market L W L W S0S0 S1S1 D D S0S0 SuSu L u L o w0w0 wuwu L 0 L n w0w0 wnwn WL

Explanation of Figure D-2.8 –(1) All displaced workers move to non-union market. Supply curve in non-union market increases, driving the wage down and causing some workers to drop out of LF.

Figure D-2.9: Product Market Effects Union-Produced Output Market Non-Union Produced Output Market Q P Q P D S0S0 S1S1 Q 1 Q 0 P1P1 P0P0 S D0D0 D1D1 Q 0 Q 1 P0P0 P1P1

Figure D-2.10: Product Market Effects on Non-Union Labor Market L W S D0D0 D1D1 L 0 L 1 w0w0 w1w1

Figure D-2.11: Shock Effects of Unionization on Firm W L D DSDS S0S0 SuSu L u L 0 w0w0 wuwu wsws (1) (2) (1)Unionization occurs (2)Shock effect occurs to raise productivity