1. Chapter 13 Unions and the Labor Market

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3. Copyright © 2003 by Pearson Education, Inc.13-3 Figure 13.1 Union Membership as a Percentage of All Workers, by Sector, United States, 1973–2000 Source: Barry T. Hirsch and David A. Macpherson, Union Membership and Earnings Data Book 2001 (Washington, D.C.: Bureau of National Affairs, 2001), Table 1.

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5. Copyright © 2003 by Pearson Education, Inc.13-5 Figure 13.2 Effects of Demand Growth and the Wage Elasticity of Demand on the Market Constraints Faced by Unions

6. Copyright © 2003 by Pearson Education, Inc.13-6 Figure 13.3 Union Maximizes Utility Subject to the Constraint of the Labor Demand Curve

7. Copyright © 2003 by Pearson Education, Inc.13-7 Figure 13.4 Employer Isoprofit Curves

8. Copyright © 2003 by Pearson Education, Inc.13-8 Figure 13.5 The Contract Curve—The Locus of Efficient Contracts

9. Copyright © 2003 by Pearson Education, Inc.13-9 Figure 13.6 The Demand for and Supply of Unionization

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11. Copyright © 2003 by Pearson Education, Inc.13-11 Figure 13.7 Hicks’s Bargaining Model and Expected Strike Length

12. Copyright © 2003 by Pearson Education, Inc.13-12 Figure 13.8 Spillover Effects of Unions on Wages and Employment

13. Copyright © 2003 by Pearson Education, Inc.13-13 Figure 13.9 Threat Effects of Unions on Wages and Employment in Nonunion Sector

14. Copyright © 2003 by Pearson Education, Inc.13-14 Figure 13A.1 Utility Function for a Risk- Averse Party: Uncertainty about Arbitrator’s Decision Leads to a Contract Zone

15. Copyright © 2003 by Pearson Education, Inc.13-15 Figure 13A.2 Increased Uncertainty about Arbitrator’s Decision Increases Size of the Contract Zone

16. Copyright © 2003 by Pearson Education, Inc.13-16 Figure 13A.3 Utility Function for a Risk-Neutral Party: Contract Zone Is Reduced to a Single Point