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Employers aren’t going to pay more until employees start asking for more. Employees don’t ask for more because labor isn’t an efficient market like stocks or re
by bdowling 7y ago
Employers aren’t going to pay more until employees start asking for more. Employees don’t ask for more because labor isn’t an efficient market like stocks or real estate. Employees tend to set their asking prices too low because they lack up to date pricing information. Outside of unionized labor and government, employers deliberately conceal salary information and make it difficult to do a valuation of a job based on comparable positions.
I don’t see how this can change unless the information gap between employers and employees is eliminated.
- mempko 7y agoIf you raise corporate tax, then companies will be incentivized to pay higher wages. Because either the IRS will take the money and burn it, or they can do something useful with it.
- bdowling 7y agoCorporations won't spontaneously pay more for labor any more than they would spontaneously pay more for parts or raw materials. If a corporation chooses to spend more on expenses, then it will tend to spend on things that increase its value. Those things may include spending more on advertising to bring in new business or moving to a fancier office to impresses new clients. Paying more for labor, however, is like paying more for electricity; it doesn't add any value.