The following graph depicts the relationship between labor unions and unemployment rate across countries. Which of the following statements correctly describe the data?

Question

Accepted Answer

Even though the bargained wage effect should shift the WS curve upward and cause higher unemployment in countries with more union power, the data to do not show this relationship.

Accepted Answer

Unemployment rate is uncorrelated with the share of employees covered by collective bargaining.

Answer

Unemployment rate is positively correlated with the share of employees covered by collective bargaining.

Answer

Even though the bargained wage effect should shift the WS curve downward and cause lower unemployment in countries with more union power, the data to do not show this relationship.

Crowdly

The following graph depicts the relationship between labor unions and unemployme...

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