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Labor unions are organized groups of laborers that work together to fight for higher wages and better working conditions.
- Labor unions allow workers to have a voice in business decisions. They can coordinate strikes and make their demands known as a consolidated voice through their union leaders.
- Europe has much stronger and more influential labor unions that does the United States, as more workers choose to join a labor union.
- When a union is successful in forcing a company to pay its employees a market clearing wage higher than the market clearing wage (by threatening to strike), the labor market does not clear and there is structural unemployment.