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Here's a few examples: - High implicit labour prices. When you add up all the required costs to hire somebody (minimum wage, healthcare costs, payroll taxes, e
by snrplfth 10y ago
Here's a few examples:
- High implicit labour prices. When you add up all the required costs to hire somebody (minimum wage, healthcare costs, payroll taxes, etc.) it's no surprise that there's going to be some portion of the population which can find no work at that price.
- Unnaturally high costs in the most productive areas. Cities with lots of jobs will naturally have high costs, but a lot of regulations, like zoning law and building codes essentially put a high minimum price on living in particular places. This makes it very hard for people to move to the work.
- Licensing and accreditation. There's tons of jobs (many of them service-sector jobs) that require a license, lots of permits, and often particular kinds of schooling to be able to legally do them.
- JamesBarney 10y agoI agree that your zoning/NIMBY laws could be improved through federals laws, and licensing could and accreditation could be limited. But on your point about implicit labour prices I have to disagree. At least with the costs listed. The implicit labor costs increase the de facto minimum wage. But payroll taxes are 7.5%, federal minimum wage is currently $7.25/hr, fine for not covering healthcare costs ends up being ~ 1$ an hour. So we end up with a de facto minimum wage of $8.80/hr. This means that it only prevents jobs that produce less that ~$9/hr of value. Which I don't think many people would classify as a "good" job. But it also has all of the effects both positive and negative of a minimum wage. The negatives are that any potential jobs that generate less than $8.80/hr wouldn't be created, but it also brings the positives which are that any employees that generate more than $8.80/hr an value but who due to negotiating power would have made less get a raise.