Ask Prof Wolff LIVE: The Manipulation of Labor Markets

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An audience member of Ask Prof Wolff LIVE asks: "Can you discuss the concept of labor markets and how they influence collective bargaining power?"

Prof Wolff answered this question during a live Ask Prof Wolff event.

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Showing 1 comment

  • Edward Dodson
    commented 2023-01-04 18:40:48 -0500
    Another important factor is the level of experience, knowledge and skills required to perform a given responsibility. When the labor market favors employers, the employer will tend to increase the level of experience, knowledge and skills for applicants from whom they will choose to hire. For some individuals the opportunity to obtain employment at a living wage with benefits membership in a union able to use collective borrowing is the only means of achieving these personal goals. Only a consistently full employment economy shifts the leverage from employers to employees in a general way. Of course, there are periods during which the need for people with specialized knowledge and skills cannot be easily filled. One means of “correcting” the imbalance is to permit immigration of people who possess the needed knowledge and skills. Another strategy, as Professor Wolff states, is to move the activity to another location or country where employees can be recruited who possess the needed characteristics at the same or lower costs.
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