Traditional supply and demand economics implies open and equal information for buyer (employer) and seller (employee). For goods and services, there is transpar

Traditional supply and demand economics implies open and equal information for buyer (employer) and seller (employee). For goods and services, there is transparency in the price of a product. In the labor relationship, the buyer (employer) holds almost all of the information that impacts price (wages). - Employers know how many candidates they have for a position. - Employers know what they have paid for that position in the past. - Employers can often afford to wait longer to decide. It should also be noted that the US taxes wages at a higher rate than investment or dividend earnings. This may distort the market as certain income streams are incentivized over others.