Problem
1. Explain how featherbedding and other restrictive work practices can reduce labor productivity. Why might strikes reduce the economy's output less than the loss of production by the struck firms?
2. What is the estimated size of the union wage advantage? How might this advantage diminish the efficiency with which labor resources are allocated in the economy? Normally, labor resources of equal potential productivity flow from low-wage employment to high-wage employment. Why does that not happen to close the union wage advantage?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.