Question

How is it possible for the average annual earnings of nonunionized workers to exceed those of unionized workers even though unionized workers' hourly wages are more than $\$6$higher?

Short answer

When unionized hourly wage are higher by$\$6.73$ vis-à-vis typical non-unionized worker.

Step-by-step solution

Introduction

It shall be noted that a typical unionized worker earns hourly wage over the hourly wage earned by non-unionized worker, but average annual earnings of non-unionized worker exceed those of unionized worker. this is often because a non-unionized worker works slightly longer every week than unionized worker.

Given Information

Take the following sort of situation: two workers, organized worker A and pro worker B. Unionized worker A earns $\$13.46$per hour and Non-Unionized worker B earn $\$6.73$per hour. Pro operator B performs $56$ hours per week united operator "A" performs $21$ hours.

Explanation

That means, in one year that comprises $52$weeks, the typical earning of unionized worker $A$is:

$21\times \mathrm{\$}13.46\times 52=\$14698.32$

The average annual earnings of non-unionized worker $B$is:

$56\times \mathrm{\$}6.73\times 52=\$19597.76$

That shows because, despite its high hourly wage level, average profits may indeed be minimal.. This shows that it's possible for the typical annual earnings of non-unionized workers to be over and above those of unionized workers even when unionized hourly wage are higher by $\$6.73$vis-à-vis typical non-unionized worker.