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I don't see how the labor market and the investment market are comparable (for example, bonds are auctioned off all the time, but if you try to auction off labo

• erroneousfunk 11y ago
  Exactly. "Promoting liquidity in the labor market" sounds like a great thing, until you realize that, with increased "liquidity" comes a tremendous amount of increased non-productive costs and inefficiencies. When recruiters get 30% of an employee's yearly salary as a finder's fee, higher liquidity tends to decrease the pool of money available to employees (while increasing recruiter commissions) which results in all sorts of things that aren't good for the employees, in the end. High turnover also allocates more resources for training and other startup costs, rather than focusing on production. While, yes, changing jobs for you personally might be good in some situations, promoting "labor liquidity" is a bad thing as a whole, for both employers and employees, in a sort of "tragedy of the commons" way.
  • st3v3r 11y ago
    "When recruiters get 30% of an employee's yearly salary as a finder's fee, higher liquidity tends to decrease the pool of money available to employees" Be honest, it's not like that money would have gone to the employees anyway. "While, yes, changing jobs for you personally might be good in some situations, promoting "labor liquidity" is a bad thing as a whole, for both employers and employees, in a sort of "tragedy of the commons" way." No it's not. Promoting that liquidity also means that, when one is mistreated at a job, they can easily find another.