The estimates of the output loss (or welfare loss) attributed to unionism in the UnitedStates undertaken by Albert Rees are now 50 years old. How large would you estimatethe welfare loss to be today, both in absolute (S) terms and as a percentage of GNP?You may use the following information for your calculations:na (elasticity of labor demand) = -1 (in both the union and nonunion sectors)• Union density rate = 0.10 (10%)

The estimates of the output loss (or welfare…

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The estimates of the output loss (or welfare loss) attributed to unionism in the United
States undertaken by Albert Rees are now 50 years old. How large would you estimate
the welfare loss to be today, both in absolute (S) terms and as a percentage of GNP?
You may use the following information for your calculations:
na (elasticity of labor demand) = -1 (in both the union and nonunion sectors)
• Union density rate = 0.10 (10%)

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