Impact of Unions on Wages
Assignment 9
Week 9
Brandy Yagalla
Central Penn College
1. What is spillover? How does it lead to underestimation of the impact unions have on wages?
From economic perspective spillover can be From economic perspective spillover can be referred to some economic advantage which comes across from non-planned and non-predicted incidents and results and sources in allowing some advantages to organizations or combination of organizations. This is otherwise also known as externality and could be positive or negative externalities. Union wage gain means the average gain that the average worker in the economy would gain after joining in the union. The union gap is percentage of wage difference between union jobs and non-union jobs for workers who have similar skills. But this is not correct measurement of union wage gain; therefore the union gap overestimates the union wage gain. The spillover effect exists when union is capable of increasing wage rates, which also cause a hardship to the firm or industry. Employment in the industries which have unions declines, because employers may feel that they should reduce union employment. The workers that are unemployed in the union sector will gravitate into the non-union sector. It will result in the increase of labor and a decrease in wages that demonstrates that the measured wage overstates the pure wage advantage. This becomes a threat to nonunion sector employees and they will raise wages to prevent unionization. This act results in wage advantage to understate the pure wage advantage.
2. Rank the factors in the global guide according to your belief in their importance for understanding and managing compensation.
As the employee work in the company he/she look forward to right remuneration for the work done by him. This remuneration in total that is provided to the employee for the work done by him/her is termed as compensation. In any Human resource policy Compensation form one of the most critical part. Executive
Week 9
Brandy Yagalla
Central Penn College
1. What is spillover? How does it lead to underestimation of the impact unions have on wages?
From economic perspective spillover can be From economic perspective spillover can be referred to some economic advantage which comes across from non-planned and non-predicted incidents and results and sources in allowing some advantages to organizations or combination of organizations. This is otherwise also known as externality and could be positive or negative externalities. Union wage gain means the average gain that the average worker in the economy would gain after joining in the union. The union gap is percentage of wage difference between union jobs and non-union jobs for workers who have similar skills. But this is not correct measurement of union wage gain; therefore the union gap overestimates the union wage gain. The spillover effect exists when union is capable of increasing wage rates, which also cause a hardship to the firm or industry. Employment in the industries which have unions declines, because employers may feel that they should reduce union employment. The workers that are unemployed in the union sector will gravitate into the non-union sector. It will result in the increase of labor and a decrease in wages that demonstrates that the measured wage overstates the pure wage advantage. This becomes a threat to nonunion sector employees and they will raise wages to prevent unionization. This act results in wage advantage to understate the pure wage advantage.
2. Rank the factors in the global guide according to your belief in their importance for understanding and managing compensation.
As the employee work in the company he/she look forward to right remuneration for the work done by him. This remuneration in total that is provided to the employee for the work done by him/her is termed as compensation. In any Human resource policy Compensation form one of the most critical part. Executive