4 ms·
> It's impossible This was actually my point. Wages have a large random component (negotiation might help the randomness but doesn't fix it). We need a decent
by comicjk 9y ago
> It's impossible
This was actually my point. Wages have a large random component (negotiation might help the randomness but doesn't fix it). We need a decent lower limit, or else the lower tail of the random distribution leaves too many people as working poor.
- daenz 9y agoRaising the artificial lower limit just shifts and compresses the lower tail and those just above it (see: wage compression), until the rest of the economy adjusts and pushes the rest of the wage distribution back to its original relative position. In the meantime, while that adjustment is happening, you've temporarily helped wages but hurt employment opportunities for people who need it most (the low wage people who can't sell themselves). Interesting point about wage compression is how demoralizing it is. I've talked to employees who have first hand been subject to it. The general sentiment is "Why do I suddenly make the same amount as people who are less skilled and less experienced than me? I worked hard to get ahead. How is this fair?" And this sentiment was from very left progressive individuals.