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According to the Segmented Labor Market View, Unions Restrict the Labor

Question 64

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According to the segmented labor market view, unions restrict the labor supply to increase wages. As labor migrates to nonunion markets, nonunion wage rates fall. Which of these actions would reduce the incentive for firms to substitute nonunion workers for union members?


A) increasing the income tax on all workers
B) passing discriminatory laws that bar immigrants from certain jobs
C) increasing the minimum wage in the nonunion markets
D) providing more education and training for union members

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