> as they can get a better paying job by switching companies within the same industry whenever they like. There's definitely a lot of truth to this, but I thin

> as they can get a better paying job by switching companies within the same industry whenever they like. There's definitely a lot of truth to this, but I think it's also important to note that switching costs for jobs can be very high for employees. People can have deep social ties with coworkers, there is no guarantee that the new job is better so the risk of ending up in a worse position (with possibly burned bridges) has to be factored in. In places where the job market is limited, it can mean moving, which can be very difficult. Even in non-monopolistic areas, employment is very far from an efficient market.