> that they expect, on average, to be worth their pay. This is actually a pretty huge caveat. As it turns out, information is hugely limited and this has prett

> that they expect, on average, to be worth their pay. This is actually a pretty huge caveat. As it turns out, information is hugely limited and this has pretty far reaching implications for the shape of the labor market. Firms desire to grow and hire people to that end but they're necessarily pretty bad at guessing who will actually be profitable to hire and it's even difficult to figure out if the employees you already have are profitable and if so which ones. The result is often that lots of people get hired, many in capacities to try to figure this information out, and thanks to immense capital a few of them produce enough to employ the rest. This arrangement works because other firms are similarly handicapped but it is far from efficient in terms of resource, capital, or leisure allocation.