Lumifer comments on On Walmart, And Who Bears Responsibility For the Poor - Less Wrong
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If some prospective employees are better than others, then that long line of people will still contain better and worse candidates, and employers may compete to get the better ones.
Employers always compete for better employees, but they are, generally speaking, satisficers. The marginal benefit from having a high-IQ, very conscientious, giving-his-100%-to-the-job employee flipping burgers is not very high.