Understanding Labor Market Imperfections: Minimum Wages, Trade Unions, and Wage Discrimination

The video discusses labor-market outcomes, focusing on three main imperfections: minimum wages, trade unions, and wage discrimination. It explains nonbinding and binding minimum wages, the role of trade unions in negotiating wages, and the concept of insider-outsider theory. Wage discrimination is also covered, highlighting its impact on equity and the challenges in illustrating it diagrammatically.

Describe the impact of a binding minimum wage on employment levels.

How do trade unions affect wage rates and overall employment according to the text?