Final answer:
The goal of an inclusive union is to secure wages higher than the current market equilibrium. In the U.S., a lower share of workers have their wages determined by union bargaining compared to other high-income countries, due to less union influence and various labor market strategies.
Step-by-step explanation:
The goal of an inclusive union is to bargain for wages that are higher than the current equilibrium wages in the market. This is because unions aim to improve the welfare of their members by securing higher wages and better working conditions. However, when a union successfully negotiates higher wages (Wu), which is above the original equilibrium wage (We), it can lead to a decrease in demand (Qd) for labor, as employers may seek to hire fewer workers than they would have at the equilibrium wage or may look for alternative solutions such as outsourcing or automating certain jobs.
Compared with the share of workers in most other high-income countries, the share of U.S. workers whose wages are determined by union bargaining is lower. This can be attributed to various factors such as differences in labor laws, the strength and presence of unions, and corporate strategies that can include moving production to states or countries with less union influence. These strategies might be implemented to control costs and maintain flexibility in managing the workforce.