Factors Causing an Upward Shift in the Wage-Setting Curve
The wage-setting (WS) curve shifts upward in response to any factor that strengthens workers' bargaining position or improves their reservation position. Common causes include increased union power, more generous unemployment benefits, higher costs for employers to dismiss workers, or a withdrawal of bargaining restraint by unions. Although the specific causes may differ, they all lead to the same outcome—upward pressure on wages and prices—because they operate through the common mechanism of enhancing worker leverage in the labor market.
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Economics
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Introduction to Macroeconomics Course
Ch.2 Unemployment, wages, and inequality: Supply-side policies and institutions - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
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Ch.4 Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ
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Learn After
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