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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 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.
 
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.
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[[Category: Economics]]
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