hairyfigment comments on On Walmart, And Who Bears Responsibility For the Poor - Less Wrong

13 Post author: ChrisHallquist 27 November 2013 05:08AM

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Comment author: James_Miller 21 September 2015 06:16:16PM 2 points [-]

Managers are more likely to abuse minimum wage workers the higher the minimum wage. At a higher minimum wage workers will value their jobs more and so will tolerate more abuse before quitting, and managers will value having the worker less because employing the worker is more costly.

Comment author: hairyfigment 29 September 2015 07:32:16AM 1 point [-]

There's some evidence this is false. Now, when I tried to google it, this is the only study I found (or at least the only one I could read for free), and I don't trust it all that much. But it is not immediately crazy to think that employers can get more effort out of employees at the lower-paid end by paying them less, eg due to loss aversion.

We have yet to establish that minimum-wage labor meets my intuitive definition of a market, where people can freely make or refuse trades and you get more by paying more.