what gap?
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The gap between 'what people are comfortable with' and 'market-determined pay'
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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.
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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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A lot of people feel uncomfortable with their wages now, even though they've been artificially raised through minimum wage.
End of conversation
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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”.
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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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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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