Factions inside the workplace: free vs. unfree labor markets

Economics Economics Questions
1

I remember reading (or listening to) on this website recently, a discussion of labor economics in the free market vs. a protected labor market.

The conclusion of the argument was really unique and made a lot of sense, and was something along the lines of…

…The workers, meaning those already hired vs. those seeking employment, can somehow band together in prejudicial ways towards those seeking employment. Somehow a free market in labor/wages ensures this prejudice can’t be sustained.

EDIT: And I don’t mean labor union factions. It wasn’t that generalized of a prejudice. It was more along the lines of religious or ethnic prejudice.

Does this sound familiar to anyone? It might have been Mr. Rothbard’s argument. I’m going to look now.

EDIT: Now that I think about it, I might have the entire thing inversed. The argument might have been made by a statist seeking to argue for the necessity of unions, or something like this. Ug. I’m confused.

2

You can try to form a union and restrict competition to raise your wages, but its an unstable boycott. Each worker individually gains from cheating on the boycott more than the small amount they raise wages if they refuse to work.

Rothbard has a section on wages and unions in his 8 part lecture… its pretty good too.

3

Thank you.

BTW, where does this come from?..

Man is no inverted tree, his roots not in heaven bedded. Charlock firmly to the soil, bindweed nion to rock and field. Not to rail against the sky, spread our leaves to catch the light. Once Woad in bluebell wood, the world was home-the larch was hewn.

4

You can’t even raise wages for everyone regardless of cheating. Demand is limited.