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A Labor Union Can Increase Wages by Exercising Market Power

question 189

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A labor union can increase wages by exercising market power on behalf of workers.


Definitions:

Gini Ratio

A measure of income inequality within a population, ranging from 0 for perfect equality to 1 for maximum inequality.

Lorenz Curve

A visual depiction showing how income or wealth is spread out across a society, highlighting the levels of inequality.

Gini Ratio

A measure to determine the imbalance in earnings among a community's members, moving from 0, suggesting equality, to 1, suggesting extreme inequality.

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