In 1996, three Canadian provinces introduced

transparency laws for university pay. These laws mandated

that universities publish the salaries of their faculty. Average salaries

dropped by about 3% on average after this law. Based on this information,

what does this tell you about labour supply facing universities?

Explain.

That same transparency law was shown to

decrease salaries only in unionized universities. In contrast, in nonunionized

universities, salaries did not change on average. Based on

this information, would you change your answer to the previous question?

Explain.