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]] | ||
Revision as of 17:59, September 11, 2007
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.