Copyright 2011 The McGraw-Hill Companies 9-1 Unionism in South Africa Collective Bargaining Economic...
19
Copyright 2011 The McGraw-Hill Companies 9-1 Unionism in South Africa Collective B argaining Economic Eff ects of Unio ns Labour Market Discr imination Economic Ana lysis of Dis crimination Anti- discrimina-t ion Policies and Issues Immigration Last Word Key Terms End Show 9 Labor Market Institutions and Issues: Unionism, Discrimination, and Immigration
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Transcript of Copyright 2011 The McGraw-Hill Companies 9-1 Unionism in South Africa Collective Bargaining Economic...
Copyright 2011 The McGraw-Hill Companies9-1
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
9Labor Market Institutions and Issues: Unionism, Discrimination, and Immigration
Copyright 2011 The McGraw-Hill Companies9-2
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Chapter Objectives• Who Belongs to S.A. Unions;
the Effects of Unions on Wages, Efficiency and Productivity
• The Types and Costs of Discrimination, Economic Theories of Discrimination, and Current Antidiscrimination Issues
• The Extent and Effects of Immigration
Copyright 2011 The McGraw-Hill Companies9-3
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Unionism In South Africa• COSATU• Independent Unions• Union Membership• Mediation and Arbitration• Labour and HIV/AIDS• Bargaining Councils• Agency Shops• Closed Shops
Copyright 2011 The McGraw-Hill Companies9-4
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Effects of Unions• The Union Wage
Advantage• Efficiency and Productivity
–Negative View• Losses via Featherbedding
and Work Rules• Losses via Strikes• Losses via Labour
MisallocationGraphically…
Copyright 2011 The McGraw-Hill Companies9-5
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Effects of UnionsEffects of the Union Wage Advantageon the Allocation of Labour
Sector 1Union
Sector 2Nonunion
Employment Employment
Wag
e R
ate
Du = MRP Dn = MRP
Wu
Wn Wn
WsWag
e R
ate
N1N2 N1 N30 0
A
B
C
D
E
Area B Represents Misallocation of Labour and Decline IN Economic Efficiency
Copyright 2011 The McGraw-Hill Companies9-6
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Effects of Unions• Efficiency and Productivity
–Positive View• Longer-Run Positive Impacts: The Shock-Effect
• Reduced Worker Turnover–Exit Mechanism–Voice Mechanism
• Increased Informal Training
• Mixed Research Findings
Copyright 2011 The McGraw-Hill Companies9-7
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Labor Market Discrimination
• Types of Discrimination–Wage Discrimination
–Employment Discrimination
–Occupational Discrimination
–Human Capital Discrimination
• Costs of Discrimination
Copyright 2011 The McGraw-Hill Companies9-8
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Labor Market DiscriminationDiscrimination and Production Possibilities
Cap
ital
Go
od
s
Consumer Goods
0
Kd
Cd
X
Y
Z
DiscriminationCauses a Failure toAchieve ProductiveEfficiency
EfficientCombinations
D
Copyright 2011 The McGraw-Hill Companies9-9
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Analysis of Discrimination
• Taste-for-Discrimination Model
–Discrimination Coefficient
–Prejudice and the Market African-American-White Wage Ratio
–Competition and Discrimination
O9.1
Copyright 2011 The McGraw-Hill Companies9-10
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Analysis of Discrimination
Taste for Discrimination Model
Wo
man
Wag
e R
ate
(Ran
d)
Woman Employment (Millions)
0
D3
D2
D1
S
12 16 18
6
R9
8
MoreDiscrimination
LessDiscrimination
Copyright 2011 The McGraw-Hill Companies9-11
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Analysis of Discrimination
• Statistical Discrimination–Labor Market Example–Profitable, Undesirable, but
Not Malicious• Occupational Segregation:
The Crowding Model–The Model–Effects of Crowding
Graphically…
Copyright 2011 The McGraw-Hill Companies9-12
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Economic Analysis of Discrimination
Wag
e R
ate
Wag
e R
ate
Wag
e R
ate
B BBM M
W
3 4 3 4 64
Dx Dy Dz
Occupation X Occupation Y Occupation Z
Economics of Occupational Segregation
Quantity of Labour(Millions)
Quantity of Labour(Millions)
Quantity of Labour(Millions)
By Crowding Women Into One Occupation (Z)…
Men Enjoy Higher Wages in the Other Occupations (X and Y)
000
Eliminating Occupational Segregation
Copyright 2011 The McGraw-Hill Companies9-13
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Antidiscrimination Policies and Issues
• South African Employment Equity Act
• Affirmative Action Requirement–Supportive View–Opposing View
• Reverse Discrimination
Copyright 2011 The McGraw-Hill Companies9-14
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Immigration• Legal Immigrants• Unauthorized
Immigrants• Economics of
Immigration–Wage Rates and World
Output–Income Shares
9.1
Copyright 2011 The McGraw-Hill Companies9-15
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
ImmigrationThe Simple Economics of Immigration
Wag
e R
ate
South Africa Zimbabwe
Quantity of Labour(Millions)
Quantity of Labour(Millions)
DuDm
a
A
bd D
B
We
Wag
e R
ate
We
c f F C
Wu
0 0
Wm
Immigration to South Africa Impacts Jobs and Wage Rates
Copyright 2011 The McGraw-Hill Companies9-16
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Immigration• Complications and
Modifications–Costs of Migration
–Remittances and Backflows
–Full Employment versus Unemployment
–Fiscal Impacts
• Immigration: Two Views
Copyright 2011 The McGraw-Hill Companies9-17
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Allegations of Discrimination in Hiring of Women in Major Symphony Orchestras
Orchestrating Impartiality
• “Blind” Auditions by Hiding Candidates behind Screens
• Screened Auditions Increased Probability of a Woman Hiring by 50%
• Without Screens Was Only 10% But With the Screens 35%
• Today About 25% of Top Orchestra Members Are Women
• Directors Demonstrated a Clear Bias Toward Men in Hiring
Last
Word
Copyright 2011 The McGraw-Hill Companies9-18
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Key Terms• COSATU• independent unions• agency shop• strike• lockout• CCMA• Employment and
Equity Act• exit mechanism• voice mechanism• labor market
discrimination• wage discrimination• employment
discrimination
• occupational discrimination
• human capital discrimination
• taste-for-discrimination model
• discrimination coefficient
• statistical discrimination
• occupational segregation
• affirmative action• reverse discrimination• legal immigrants• unauthorized
immigrants
Copyright 2011 The McGraw-Hill Companies9-19
Unionism in South AfricaCollective BargainingEconomic Effects of UnionsLabour Market DiscriminationEconomic Analysis of DiscriminationAnti-discrimina-tion Policies and IssuesImmigrationLast Word
Key Terms
End Show
Next Chapter Preview…
Wage Determination
