PJ Media

In areas where Unions have less influence, non-union jobs tend to pay more, due to the fact that artificially high union wages causes a saturation of the non-union labor market, since those unionized companies usually have to lay off workers to make up the difference. Due to the law of supply and demand, when the labor market becomes saturated, it becomes of less value and the merchant (worker) who sells his commodity (labor) makes less profit per unit (lower wage). Conversely, where the unions have little control, the market is normalized and non-union jobs tend to have wages competitive with union jobs.