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.

6 thoughts on “No”

  1. Dennis, He Who Has A Degree In Economics

    This from an “economics journalist” with over 40 years experience and a dozen books under his belt.

  2. Dennis, Noted Non-Economist

    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?

  3. Bloke in North Korea (Germany province)

    “Reservation wage” is the language of violent white supremacism. I call for these people to be cancelled.

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