The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne

Exercise 10

Do high wage rates in such strongly unionized industries as steel and automobiles pull up the general level of wages in nonunionized, lowerwage industries? If you think they do, what is the process by which this occurs? If contracts that call for high wages reduce employment opportunities in the industries that must pay these wages, where do the excluded workers find employment?