Question

Suppose that garbage collectors and landscaping workers have no unions. Now suppose that garbage collectors form a union. When the garbage collectors unionize, wages and _________ unemployment _________in the garbage sector. As a consequence _________, the of landscaping workers decreases, resulting in _________wages and _________employment in the landscaping sector.

Answer 1

When garbage collectors form a union, wages increase in the garbage sector while unemployment may also increase. This leads to a decrease in wages and employment in the landscaping sector.

Step-by-step explanation:

When garbage collectors form a union, it is expected that wages increase for worker-members in the garbage sector. This is because the union can negotiate for higher wages on behalf of its members. However, the presence of a union may also lead to higher unemployment in the garbage sector. Employers may be less inclined to hire as many workers or may even automate certain tasks to reduce labor costs.

As a consequence of increased wages and higher unemployment in the garbage sector, the wages for landscaping workers decrease. This is because employers may prefer to hire landscaping workers who may be willing to work for lower wages due to the availability of fewer job opportunities in the garbage sector. Additionally, the higher wages in the garbage sector may attract some landscaping workers to switch industries, increasing competition and potentially lowering wages in the landscaping sector.