2. 35 - 1 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show LABOR-MARKET ISSUES: UNIONISM, DISCRIMINATION, AND IMMIGRATION 35 C H A P T E R

3. 35 - 2 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show UNIONISM IN AMERICA AFL - CIO Independent Unions Business Unionism Union Membership Decline in Unionism Structural Changes Structural-change hypothesis Managerial Opposition Managerial-opposition hypothesis

4. 35 - 3 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show 0 20 40 60 80 100 Sweden Italy Australia Germany United Kingdom United States South Korea France GLOBAL PERSPECTIVE Union Membership as a Percentage of the Employed Labor Force, Selected Nations Source: International Labour Organization

5. 35 - 4 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show COLLECTIVE BARGAINING The Work Agreement Union Status & Managerial Prerogatives Closed Shop Union Shop Agency Shop Right-to-Work Laws Open Shop

6. 35 - 5 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show COLLECTIVE BARGAINING The Work Agreement Wages and Hours Cost-of-Living Adjustment (COLA) Seniority & Job Protection Layoffs Sub-Contractors and Overseas Workers Grievance Procedures

7. 35 - 6 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show THE BARGAINING PROCESS Demands & Offers Strike Lockout National Labor Relations Act (NLRA) Wagner Act 1935 Taft-Hartley Act 1947 Landrum-Griffin Act 1959 National Labor Relations Board (NLRB)

8. 35 - 7 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show ECONOMIC EFFECT OF UNIONS The Union Wage Advantage Efficiency and Productivity Negative View Losses via Featherbedding and Work Rules Losses via Strikes Losses via Labor Misallocation

9. 35 - 8 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show ECONOMIC EFFECT OF UNIONS The Union Wage Advantage Efficiency and Productivity Positive View Longer-Run Positive Impacts: Shock Effect Reduced Worker Turnover Exit Mechanism Voice Mechanism Increased Informal Training

10. 35 - 9 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show LABOR MARKET DISCRIMINATION Types of Discrimination Wage Discrimination Employment Discrimination Occupational Discrimination Human Capital Discrimination Costs of Discrimination

11. 35 - 10 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show Taste-for-Discrimination Model Discrimination Coefficient Prejudice and the Market Black/White Wage Ratio Competition & Discrimination Statistical Discrimination Occupational Segregation The Crowding Model Effects of Crowding Eliminating the Occurrence COSTS OF DISCRIMINATION

12. 35 - 11 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show Equal Pay Act 1963 Title VII of the Civil Rights Act of 1964 Affirmative Action Requirement Affirmative Action Controversy Reverse Discrimination Recent Developments ANTIDISCRIMINATION POLICY

13. 35 - 12 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show IMMIGRATION Number of Immigrants 850,000 per year Legal Immigration Illegal Immigration Economics of Immigration Wage Rates and World Output Income Shares

14. 35 - 13 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show IMMIGRATION Complications and Modifications Costs of Migration Remittances and Backflows Full Employment versus Unemployment Fiscal Impact Immigration: Two Views

15. 35 - 14 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show Mexico China India Philippines Dominican Republic Vietnam Cuba Jamaica El Salvador South Korea 0 20 40 60 80 100 120 140 Thousands of Immigrants 1998 DATA GLOBAL PERSPECTIVE U.S. Immigrants by Country of Origin Source: Immigration & Naturalization Service

16. 35 - 15 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show THE SIMPLE ECONOMICS OF IMMIGRATION WuWu DuDu DmDm WmWm Quantity of labor (millions) United States Mexico

17. 35 - 16 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show THE SIMPLE ECONOMICS OF IMMIGRATION WuWu DuDu DmDm WmWm Quantity of labor (millions) United States Mexico High United States wages attract Mexican immigration

18. 35 - 17 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show THE SIMPLE ECONOMICS OF IMMIGRATION WuWu DuDu DmDm WmWm Quantity of labor (millions) United States Mexico WeWe WeWe

19. 35 - 18 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show THE SIMPLE ECONOMICS OF IMMIGRATION WuWu DuDu DmDm WmWm Quantity of labor (millions) United States Mexico WeWe WeWe Chapter Conclusions

20. American Federation of Labor and Congress of Industrial Organizations independent unions business unionism structural-change hypothesis managerial-opposition hypothesis collective bargaining closed shop union shop agency shop right-to-work laws open shop cost-of-living adjustment (COLA) strike lockout National Labor Relations Act National Labor Relations Board exit mechanism voice mechanism labor market discrimination wage discrimination employment discrimination occupational discrimination human capital discrimination taste-for-discrimination model discrimination coefficient statistical discrimination occupational segregation affirmative action reverse discrimination legal immigrants illegal immigrants ENDBACK Copyright McGraw-Hill/Irwin 2002

21. 35 - 20 Copyright McGraw-Hill/Irwin, 2002 Unionism in America Collective Bargaining The Bargaining Process The Economic Effect of Unions Labor Market Discrimination Costs of Discrimination Antidiscrimination Policy Immigration The Simple Economics of Immigration Key Terms Previous Slide Next Slide End Show Coming next: Chapter 37 The Economics Of Healthcare