Review Questions

1.
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How are unions organized in the United States?
2.
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What are yellow-dog contracts, and why were they such a hindrance to union formation?
3.
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The Landrum-Griffin Act, which was passed in 1959, outlawed secondary picketing. Use the supply-demand framework, developed in the text, to explain how this might affect the equilibrium union-density rate.
4.
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Suppose that a group of unionized workers earn $54K per annum and a group of (statistically similar) nonunionized workers earn $45K per annum. Calculate the observed relative union wage gain. Suppose that without the union, these workers would have earned only $48K rather than $54K. What does this tell us about the causal effect of the union on earnings?
5.
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Summarize the principles underlying the threat and spillover effects. Why do they compromise efforts to estimate the causal effect of unions on earnings?

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