Monday, October 24, 2016

[ldkoddtj] Liquid labor

Does society benefit by having liquidity in the labor market, i.e., people being easily able to quit their jobs and work for someone else?  Or is it purely an internal calculation: each worker should be permitted the freedom of entering into labor contracts that are easier or harder to quit with the market setting different wage premiums for different types of contracts?

Probably an illiquid labor market benefits established businesses and discourages innovation.

Consider regulation which penalizes businesses for practices discouraging their workers from quitting.  Or at least, such practices must be transparent and declared at the outset.

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