3 ms·
> Basic supply and demand" is almost always wrong for the labor market. We’ll just have to agree to differ. Although I would be curious to hear about examples
by gwright 4y ago
> Basic supply and demand" is almost always wrong for the labor market.
We’ll just have to agree to differ. Although I would be curious to hear about examples of this scenario where employers hire more people when the cost of labor goes up.
- astrange 4y agoWell, that's just what a monopsony is. Setting minimum wages can cause higher employment in a monopsony model and that's pretty basic theory too. https://equitablegrowth.org/understanding-the-economics-of-monopsony-how-labor-markets-work-under-imperfect-competition/ https://equitablegrowth.org/understanding-the-economics-of-m...