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Economics 151A
1. Labor Union History
a. Know general order of legislation
b. Know details and implications of both Wagner Act and Taft-Hartley Act
Wagner Act: power to the unions
o Firms cannot interfere with collective bargaining or self-organization
o Firms cannot encourage or discourage union membership
o Firms cannot discriminate against an employee for filing charges under the
act
o Firms cannot refuse to bargain collectively
2. Labor Unions
a. Know how to model the decision to join a union
Joining a union provides an increase in wage and a decline in employment
The individual will decide to join a union if the decrease in hours worked is
compensated by an increase in wage.
b.
c.
d.
e. Farber (1990), why have we seen a decline in union participation since the 70s.
f. Know the model of monopoly unionism and the implications of the elasticity of
the firms demand curve on the utility of the unions
g. Be able to calculate the number of people hired and the equilibrium wage if there
were a monopoly union and no bargaining.
h. Be able to calculate the deadweight loss of unions in the 2 sector model presented
in class