Question: Suppose there are two groups of workers, unionized and nonunionized. Congress passes a law that requires all workers to join the union. What do you

Suppose there are two groups of workers, unionized and nonunionized. Congress passes a law that requires all workers to join the union. What do you expect to happen to the wage rates of formerly nonunionized workers? Of those workers who were originally unionized? What have you assumed about the union’s behavior?

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In general we expect that nonunionized workers are earning lower wages than unionized worker... View full answer

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