IN THIS CHAPTER YOU WILL LEARN:

1. Why labor productivity and real hourly compensation track so closely over time.



2. How wage rates and employment levels are determined in competitive labor markets.



3. How monopsony (a market with a single employer) can reduce wages below competitive levels.



4. How unions can increase wage rates.



5. The major causes of wage differentials.



6. The types, benefits, and costs of "pay-for-performance" plans.



7. (Appendix) Who belongs to U.S. unions, the basics of collective bargaining, and the economic effects of unions.