Labor unions cause unemployment because the union contract wage is set. true or false

That statement is true Above the market wage, thus causing a surplus of labor

Explanation:

During its early period, the labor unions require a payment that is way Above the market wage, thus causing a surplus of labor

When the labor union set a requirement for above the market wage, it become much easier for the employers to find the workers who are willing to work for lesser amount instead.

Because of this, members of labor unions were constantly underbid by non members and lead to unemployment.

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