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Introduction to Labor Economics Graphs and Tables Handout #3-Part 2.

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Presentation on theme: "Introduction to Labor Economics Graphs and Tables Handout #3-Part 2."— Presentation transcript:

1 Introduction to Labor Economics Graphs and Tables Handout #3-Part 2

2 Table D-2.1: Private Sector Union Membership, 1900-98 Year Union Members Market Share Year Union Members Market Share 1900 917,000 6.5%195013,550,00034.6% 1905 1,923,00011.1%195515,341,00035.1% 1910 2,109,00010.5%196016,907,00037.0% 1915 2,508,00012.5%196516,906.00033.5% 1920 4,664,00019.2%197018,295,00031.0% 1925 3,495,00013.2%197518,210,00028.5% 1930 3,482,00013.3%198015,273,00020.6% 1935 3,337,00014.2%198511,226,00014.6% 1940 6,848,00024.3%199010,247,00012.1% 194511,674,00033.9%1991 9,898,00011.9%

3 Table D-2.1: Private Sector Union Membership, 1900-98 Year Union Members Market Share Year Union Members Market Share 19929,703,00011.5% 19939,554,00011.2% 19949,620,00010.9% 19959,400,00010.4% 19969,385,00010.2% 19979,363,0009.8% 19989,306,0009.5%

4 Figure D-2.1: US Private Sector Union Density 1929-2006

5 Figure D-2.2: Union Membership among Public and Private Sector Workers, 2000-2009

6 Figure D-2.3: The Regular Labor Market Employers Workers Cooperation Competition

7 Figure: D-2.4: The Unionized Labor Market Employers Workers Quasi- Cooperation Competition Union Non-union Adversarial Unionized Non-unionized (Potential for Violence) (NLRB Ban on Company Unions)

8 Figure D-2.5: Unions as Monopolist-The Craft Union Model ScSc SmSm D L W w c w m L c L m Rent Welfare Loss

9 Figure D-2.6: Unions as Monopolist-The Industrial Union Model W L ScSc D w c w m L m L c L 0 Rent Welfare Loss

10 Figure D-2.7: Effects of Elasticity on Ability of Unions to Raise Wages W L W L D0D0 D1D1 (a)More Elastic, Difficult to Raise Wages (b) Less Elastic, Easier to Raise Wages 400 600 $20 $22 $10 $5 800 900 S0S0 S1S1 S1S1 S0S0

11 Figure D-2.8: The Spillover Model Union Market Non-Union Market L W L W S0S0 S1S1 D D S0S0 SuSu L u L o w0w0 wuwu L 0 L n w0w0 wnwn WL

12 Explanation of Figure D-2.8 –(1) All displaced workers move to non-union market. Supply curve in non-union market increases, driving the wage down and causing some workers to drop out of LF.

13 Figure D-2.9: Product Market Effects Union-Produced Output Market Non-Union Produced Output Market Q P Q P D S0S0 S1S1 Q 1 Q 0 P1P1 P0P0 S D0D0 D1D1 Q 0 Q 1 P0P0 P1P1

14 Figure D-2.10: Product Market Effects on Non-Union Labor Market L W S D0D0 D1D1 L 0 L 1 w0w0 w1w1

15 Figure D-2.11: Shock Effects of Unionization on Firm W L D DSDS S0S0 SuSu L u L 0 w0w0 wuwu wsws (1) (2) (1)Unionization occurs (2)Shock effect occurs to raise productivity


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