Economics UNION question; help!?

Question

Under a closed-shop arrangement employers may hire only workers who are already union members. Under a union-shop arrangement, employers may hire whomever they please but the employees must then join the union. What different effects would you expect these alternative arrangements to have on wages? On employment? On discrimination by the union against members of minority races? Why?

Answer 1

Either way, if employees are required to be part of a Union, the effect will be to drive up wages and therefore drive up costs of production leading to higher prices being charged to cover this cost and inflation here we come! Regarding the employment aspect, workers will generally accept joining a union and therefore have little impact on the number of workers being hired in that particular company. Employment in the long run however may be affected as inflation rises to the point of recession. Regarding race, I have never heard of a Union discriminating on racial grounds.