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Quite true. The former situation is rare, though. Even when it appears that there are 10 firms chasing 9 employees, a 10th is likely to materialize when they fi
by randomdata 3y ago
Quite true. The former situation is rare, though. Even when it appears that there are 10 firms chasing 9 employees, a 10th is likely to materialize when they find out where the other vendors are situated, diminishing the opportunity for the 9 that were already in line.
- s1artibartfast 3y agoIt isn't that rate. This phenomenon is the reason that every single job doesn't pay the minimum salary required by law.
- randomdata 3y agoKind of. That's just supply and demand. But markets are never perfectly efficient. From my personal experience working in an industry that hires a lot of minimum wage workers, I encounter a lot of people who just don't realize that they could make more doing something else. I mean, they understand in some nebulous way that higher paying jobs exist, but not in an actionable way. With more information, they might notice that they could squeeze out a particular guy making $30 by doing the job for $25 per hour. But they don't even go there because they lack the information needed. At the same time, those minimum wage jobs I speak of aren't going to pay more if the people leave – the work would just disappear. So while these individuals would make more, they would place downward pressure on the overall market in making such a move. By keeping the information hard to come by, however, you can avoid some of that competitive pressure.
- s1artibartfast 3y agoI think we basically agree.