Labor shortages bid up what economists call the reservation wage—the lowest wage that will fetch willing workers.
No, that’s the market wage. The reservation wage is:
A worker’s reservation wage is the minimum wage that the worker requires in order to participate in the labor market. It represents the monetary value of an hour of leisure (broadly defined as any non-labor-market activity) to the worker.
This from an “economics journalist” with over 40 years experience and a dozen books under his belt.
I’d love to listen to Kuttner and Murphy discuss economics over tea.
Would there be any bit of it they couldn’t fuck up between them?
When I encounter “The dirty little secret of …” I read no further.
I avoid cliches like the covid
“Reservation wage” is the language of violent white supremacism. I call for these people to be cancelled.
Reservation wage was whiskey and shiny prices of glass. Now it’s casinos.