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Aella_Girl's profile
Aella
Aella
Aella
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@Aella_Girl

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AellaVerified account

@Aella_Girl

whorelord http://aella.hns.to 

Austin
knowingless.com
Joined September 2012

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    Aella‏Verified account @Aella_Girl 12 May 2018

    If the market determined pay (employees shopped around and companies wanted to pay low), the resulting pay would be, presumably, lower than what people are comfortable with. Why is this? Are there any policies which have resulted in this gap? It seems unnatural to me.

    10:18 AM - 12 May 2018
    • 6 Likes
    • juniper The Pfizervarine Tom SpankChain Christopher
    19 replies 0 retweets 6 likes
      1. New conversation
      2. JD‏ @lafingman0 12 May 2018
        Replying to @Aella_Girl

        what gap?

        1 reply 0 retweets 0 likes
      3. Aella‏Verified account @Aella_Girl 12 May 2018
        Replying to @lafingman0

        The gap between 'what people are comfortable with' and 'market-determined pay'

        1 reply 0 retweets 0 likes
      4. Show replies
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      2. Albert‏ @AlbertLEtranger 12 May 2018
        Replying to @AlbertLEtranger @Aella_Girl

        Most industry labor markets are oligopsonistic, which gives firms market power. In this way, the market-clearing wage is lower than it would be under perfect competition, and so you also see employees complained that they’re not being compensated on their productivity.

        1 reply 0 retweets 0 likes
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      1. Christopher‏ @seekeegel 12 May 2018
        Replying to @Aella_Girl

        Pay that way is determined more by the employment rate. When employment is high, wages are high entice the limited unemployed to work. When employment is low, pay drops as the unemployed will look for anything that pays.

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      2. Aella‏Verified account @Aella_Girl 12 May 2018

        A lot of people feel uncomfortable with their wages now, even though they've been artificially raised through minimum wage.

        0 replies 0 retweets 0 likes
      3. End of conversation
      1. Albert‏ @AlbertLEtranger 12 May 2018
        Replying to @Aella_Girl

        Often times you see firms pay efficiency wages, which are higher than what the market-clearing wage is but ensure higher productivity. People may well take that to be the standard they compare their wages to, and so the market clearing wage ends up being seen as “not enough”.

        0 replies 0 retweets 2 likes
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      1. Albert‏ @AlbertLEtranger 12 May 2018
        Replying to @Aella_Girl

        Part of the discomfort that you see is that yes—presumably the market is clearing, but it does not mean that the wage is set exactly at a point corresponding to people’s productivity. Instead, since employers have market power, wage growth and the overall wage level are lower.

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      1. Doc‏ @Gray_DM 12 May 2018
        Replying to @Aella_Girl

        Those with the "capital" have a better negotiating position. Worker lacks work = doesn't eat. Business owner lacks business = sells some assets. That + workers competing against e/o. It's why collective bargaining is a *necessary* counterbalance, imo.

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