Wages And Union Membership (Routinely Secure Better Wages, Benefits And Workplace Protections)

Wages and Union MembershipRelationship between wages and union membershipAs per the marginal productivity theory in economics, wages of workers basically depend upon marginal productivity. However, in imperfect competitive labor markets, wages of a worker could be less than the marginal productivity, depending workers bargaining power. There are several factors that affect the bargaining power of workers, such as labor regulations (Sofi & Sharma, 2015). However, of some experts argue that worker’s affiliation with trade union play a role in determining wage rate (Saha et al, 2013). The empirical study based on a cross-section analysis shows that union affiliation does not have a significant effect on wages. There is a belief among some scholars that workers’ affiliation with labor unions strengthen their bargaining power, thereby ensuring higher wages (Saha et al, 2013). On the other hand, some scholars argue that higher union affiliation creates disharmony between employers and workers, thereby affecting the business and eventually the burden is born by workers (Besley & Burgess, 2004). They believe that more union affiliation leads to