Answer to Question #148804 in Microeconomics for vil

Question

Union members are generally paid significantly more than minimum wage. Why then, do unions support increase in the minimum wage?

Answer 1

Unions push for minimum wage increases. Minimum wage increases the labor costs for employers using low-skilled workers. This decreases the gap between the wage rate of low-skilled and high-skilled workers; high-skilled workers are more likely to be represented by a union.