Reaction Paper # 3 is based on the Article, “Labor Economics and Labor Relations”, by Loyd Reynolds, Stanley Masters, & Colletta Moser.
This article offers a number of economical viewpoints, which although justifiable and scientifically proven, are still subject to debate. The first disagreeable point made by the author’s was their belief that an employee seeks an overall “employment package”, apart from wage, in determining their future employer. According to the article, the employee does not seek the highest wage available in their particular market. Instead, they search for the job that will offer the greatest net advantage such as fringe benefits and a pleasant working environment. This is not necessarily true because many potential employees, particularly those in the working class, don’t necessarily know the type of working environment in which they will be placed. They may be made aware of the benefits that is granted them but the “overall package” is not necessarily discussed during an interview process.
an effective tool for determining relative wage rates, but unlike the “ceteris parabus” presumed in such calculations is misleading. Particularly because we live in a highly fluid and pliable economy. Far from the Utopia that these calculations epitomize.
Another point made in this article was the idea that Unions serve the purpose of depressing wages for nonunion jobs. The belief is that the surplus of applicants kept out by imposed union restrictions will go out and seek alternative nonunion employment for lower pay. This is highly debatable. The surplus of applicants is too insignificant a number to have any sort of impact on a labor market and causing wage rates to drop. Particularly this day in age where the number of unionized labor has dropped over the years and more and more employers are anti-union. It is also safe to assume that unionized labor is set to maintain a competitive wage for employees in a particular field or occupation. Workers who apply for such jobs are skilled in their own right and are well aw