Difference between revisions of "Spill-over effect"
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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 | + | 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]] |
Latest revision as of 19:36, July 13, 2016
The spill-over effect is how increase union wages can cause a decrease in non-union wages. This can occur because employers 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.