Trade Unions may use their collective bargaining power and bid for employers to pay a premium wage (or “wage mark-up”) above the normal competitive market wage. However, this might lead to an excess supply of labour and a contraction of total employment. This short revision video takes students through the basic analysis and some core evaluation arguments.
© 2022 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.