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Where businesses do underpay people, that means there is an opportunity for another business to swoop in and capture their talent with higher wages.
Theoretically. In actuality labour is not as flexible as the market assumes. Ppl have many incentives to stay in a badly paying job. Location, people, the stress of switching. Also wages aren't transparent & are taboo to talk about. These things weaken market assumptions
*human psychology plays big role.
You might be interested in the negative income tax Milton Friedman argued for. It’s better than setting price and wage controls, or having a mess of welfare programs with incentives that hurt the people they’re trying to help.
And that could be the natural distribution of a land-value tax!
I do agree that labor is not as flexible as simple models assume & I assume it would help people move if we had a universal basic income. However, I'd say many of the incentives to stay in a bad paying job are part of people' utility function & are fair game.
I think tech offers a better solution here (e.g. Glassdoor) rather than the government coming in w/ a minimum wage, which primarily just restricts workers' options & clouds the information supposed to be contained in a price.
Twitter saattaa olla ruuhkautunut tai ongelma on muuten hetkellinen. Yritä uudelleen tai käy Twitterin tilasivulla saadaksesi lisätietoja.
