Even in the absence of collective bargaining, workers do have some bargaining power that allows them to receive wages higher than their reservation wage. Each worker's bargaining power depends both on the nature of the job and on the economywide labor market conditions. Let's consider each factor in turn. a. Compare the job of a delivery person and a computer net- work administrator. In which of these jobs does a worker have more bargaining power? Why? b. For any given job, how do labor market conditions affect a worker's bargaining power? Which labor market variable would you look at to assess labor-market conditions? c. Suppose that for given labor market conditions (the vari- able you identifled in part b), worker bargaining power throughout the economy increases. What effect would this have on the real wage in the medium run? in the short run? What determines the real wage in the model described in this chapter?

Even in the absence of collective bargaining, workers do have some bargaining power that allows them to receive wages higher than their reservation wage. Each worker's bargaining power depends both on the nature of the job and on the economywide labor market conditions. Let's consider each factor in turn. a. Compare the job of a delivery person and a computer net- work administrator. In which of these jobs does a worker have more bargaining power? Why? b. For any given job, how do labor market conditions affect a worker's bargaining power? Which labor market variable would you look at to assess labor-market conditions? c. Suppose that for given labor market conditions (the vari- able you identifled in part b), worker bargaining power throughout the economy increases. What effect would this have on the real wage in the medium run? in the short run? What determines the real wage in the model described in this chapter?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 13RQ: What is die price commonly called in the labor market?

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