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The '''spill-over effect''' is how increase union wages can cause a decrease in non-union wages. This can occur because [[employer]]s will reduce the number of higher-paying union jobs, causing those who lose their jobs to flood the labor market for non-union jobs. This increase in non-union laborers then drives down the wages for non-union jobs.
The '''spill-over effect''' is how increase union wages can cause a decrease in non-union wages. This can occur because [[employer]]s will reduce the number of higher-paying union jobs, causing those who lose their jobs to flood the labor market for non-union jobs. This increase in non-union laborers then drives down the wages for non-union jobs.
[[Category: Economics]]
[[Category:Economics]]