Abstract The Wages and working conditions of about one in three Canadian workers are determined by collective bargaining. In this paper current knowledge about the economic effects of collective bargaining is surveyed. Unions raise wages (by about 15 per cent on average) and reduce wage dispersion for their members while also reducing profits. Unions do not seem to reduce employment levels in affected firms, or cause non-union wages to fall. Efficiency losses due to sectoral misallocation of labour and to strikes are small, but some evidence suggests lowered investment in unionized firms. Union effects on total factor productivity need more careful study using firm-level data. /// Syndicats et économie: ce qu'on connaît et ce qu'on ne connaît pas. Les salaires et les conditions de travail d'à peu près un travailleur canadien sur trois sont définis par des conventions collectives. Dans ce mémoire, l'auteur fait le point sur ce qu'on connaît sur les effects économiques des conventions collectives. L'existence des syndicates tend á augmenter le niveau des salaires (à peu près 15 pour cent en moyenne) et à réduire la dispersion des taux de salaires des membres mais tend aussi à réduire les profits. L'existence de syndicats ne semble pas réduire les niveaux de l'emploi dans les entreprises affectées, ou entraîner une chute des niveaux de salaires des travailleurs non-syndiqués. Les pertes d'efficacité attribuables à la mauvaise allocation du travail ou aux grèves sont faibles, mais certains résultats suggèrent qu'il existe un niveau plus faible d'investissement dans les entreprises syndiquées. Il faudra analyser l'effect des syndicats sur la productivité totale des facteurs de production à l'aide de données au niveau de la firme avant de pouvoir tirer quelque conclusion que ce soit. Journal Information The Canadian Journal of Economics (CJE) is the journal of the Canadian Economics Association (CEA) and is published by Blackwell. The CJE has its roots in the journal Contributions to Canadian Economics, which began publication in the 1928 and was replaced in 1935 by the Canadian Journal of Economics and Political Science (CJEPS). In 1968, CJEPS divided into two parts: The Canadian Journal of Economics and the Canadian Journal of Political Science. The CJE and its forerunners have a long tradition as a leading general interest journal in economics and have published many classic papers in economics including, for example, Paul Samuelson's classic 1939 paper on the gains from trade and early work by Robert Mundell related to optimum currency areas. The CJE seeks to maintain and enhance its position as the leading economics journal based in Canada and as a major internationally recognized journal. 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Wiley has partnerships with many of the world’s leading societies and publishes over 1,500 peer-reviewed journals and 1,500+ new books annually in print and online, as well as databases, major reference works and laboratory protocols in STMS subjects. With a growing open access offering, Wiley is committed to the widest possible dissemination of and access to the content we publish and supports all sustainable models of access. Our online platform, Wiley Online Library (wileyonlinelibrary.com) is one of the world’s most extensive multidisciplinary collections of online resources, covering life, health, social and physical sciences, and humanities. Rights & Usage This item is part of a JSTOR Collection. What is the effect of labor unions on nonunion wage rates quizlet?The higher wages achieved in the unionized sector of the labor market will be accompanied by a loss of jobs and displaced workers will 'spill over' into the nonunion sector and depress nonunion wages. IMPORTANT: It overstates the union wage advantage because the 'spill over' lowers the nonunion wages.
What is the union threat effect quizlet?According to the "threat effect", the union wage gap underestimates the true impact of unionization on wages. Why? Nonunion firms increase their wages in order to deter its workers from forming union. According to the "spillover effect", the union wage gap overestimates the true impact of unionization on wages.
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