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Extension Laws

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PPGPortal > Home > Concept Dictionary > D, E > Extension Laws
 

Extension Laws

Extension laws refer to union wages that are extended to all of the employees; thereby, eliminating heterogeneity - difference in wages - in the economy.

(Professor John Myles, February 28 2009)

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Extension laws are passed by states to help regulate the labour market; for example, in France approximately 80% of workers are covered by union contracts, or have wages set by collective labour unions. (Professor John Myles, February 28 2009)

     

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