1. 35
C H A P T E R
LABOR MARKET INSTITUTIONS AND ISSUES: UNIONISM, DISCRIMINATION, IMMIGRATION

2. Managerial Opposition
UNIONISM IN AMERICA
AFL - CIO
Independent Unions
Business Unionism
Union Membership
Decline of Unionism
Structural Changes
Structural-change hypothesis
Managerial Opposition
Managerial-opposition hypothesis

3. GLOBAL PERSPECTIVE 13.2% Denmark Sweden Italy Australia Germany
Union Membership as a Percentage of
the Employed Labor Force, Selected Nations
Denmark
Sweden
Italy
Australia
Germany
United Kingdom
Hungary
United States
South Korea
France
13.2%
Source: International Labour Organization

4. Union Status & Managerial Prerogatives Closed Shop Union Shop
COLLECTIVE BARGAINING
The Work Agreement
Union Status & Managerial Prerogatives
Closed Shop
Union Shop
Agency Shop
Right-to-Work Laws
Open Shop

5. Seniority & Job Protection
COLLECTIVE BARGAINING
The Work Agreement
Wages and Hours
Cost-of-Living Adjustment (COLA)
Seniority & Job Protection
Layoffs
Sub-Contractors and Overseas Workers
Grievance Procedures

6. National Labor Relations Act (NLRA)
THE BARGAINING PROCESS
Demands & Offers
Strike
Lockout
National Labor Relations Act (NLRA)
Wagner Act 1935
Taft-Hartley Act 1947
Landrum-Griffin Act 1959
National Labor Relations Board (NLRB)

7. 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 Misallocation

8. ECONOMIC EFFECTS OF UNIONS
The Union Wage Advantage
Efficiency and Productivity
Positive View
Longer-Run Positive Impacts: Shock Effect
Reduced Worker Turnover
Exit Mechanism
Voice Mechanism
Increased Informal Training

9. LABOR MARKET DISCRIMINATION
Types of Discrimination
Wage Discrimination
Employment Discrimination
Occupational Discrimination
Human Capital Discrimination
Costs of Discrimination

10. COSTS OF DISCRIMINATION
Taste-for-Discrimination Model
Discrimination Coefficient
Prejudice and the Market Black/White Wage Ratio
Competition & Discrimination
Statistical Discrimination
Occupational Segregation
The Crowding Model
Effects of Crowding
Eliminating the Occurrence

11. ANTIDISCRIMINATION POLICY
Equal Pay Act 1963
Title VII of the Civil Rights Act of 1964
Affirmative Action Requirement
Affirmative Action Controversy
Reverse Discrimination
Recent Developments

12. IMMIGRATION
Number of Immigrants
850,000 per year
Legal Immigration
Illegal Immigration
Economics of Immigration
Wage Rates and World Output
Income Shares

13. IMMIGRATION Complications and Modifications Costs of Migration
Remittances and Backflows
Full Employment versus Unemployment
Fiscal Impacts
Immigration: Two Views

14. GLOBAL PERSPECTIVE U.S. Immigrants by Country of Origin Mexico India
Thousands of Immigrants
Mexico
India
China
Philippines
Vietnam
El Salvador
Cuba
Haiti
Bosnia-Herzegovina
Canada
2001 DATA
Source: Immigration & Naturalization Service

15. THE SIMPLE ECONOMICS OF IMMIGRATION
United States
Mexico Wu Wm Du Dm
Quantity of labor (millions)
Quantity of labor (millions)

16. THE SIMPLE ECONOMICS OF IMMIGRATION
United States
Mexico
High United States wages
attract Mexican immigration. Wu Wm Du Dm
Quantity of labor (millions)
Quantity of labor (millions)

17. THE SIMPLE ECONOMICS OF IMMIGRATION
United States
Mexico Wu We We Wm Du Dm
Quantity of labor (millions)
Quantity of labor (millions)

18. KEY TERMS exit mechanism voice mechanism labor market discrimination
American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
independent unions
business unionism
structural-change hypothesis
managerial-opposition hypothesis
collective bargaining
closed shop
union shop
agency shop
right-to-work laws
open shop
cost-of-living adjustment (COLA)
strike
lockout
National Labor Relations Act (NLRA)
National Labor Relations Board (NLRB)
exit mechanism
voice mechanism
labor market discrimination
wage discrimination
employment discrimination
occupational discrimination
human capital discrimination
taste-for-discrimination model
discrimination coefficient
statistical discrimination
occupational segregation
affirmative action
reverse discrimination
legal immigrants
illegal immigrants
Copyright McGraw-Hill/Irwin, 2005
BACK
END

19. Coming next:
The Economics
of Healthcare
Chapter 36