Re: Help with a Minimum Wage Model

From: Damien Sullivan (phoenix@ugcs.caltech.edu)
Date: Mon Apr 07 2003 - 16:53:02 MDT

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    On Mon, Apr 07, 2003 at 05:47:07PM -0400, Matthew Gingell wrote:
    > Lee Daniel Crocker writes:
    >
    > > Why do we think it's somehow "right" to forbid contracts for pay that's
    > > not sufficient for living alone? Since when do we expect that everyone
    > > capable of working should also be capable of living alone?
    >
    > At least that's the philosophical perspective from which forbidding
    > some kinds of contract makes sense, though of course it's only one
    > possible approach.

    If the economic power conditions are such that the worker's choice is between
    the sub-subsistence level and totally starving, but the clearing price for the
    employer is above the subsistence level, the worker can be better off being
    barred from agreeing to sub-subsistence contracts. Kind of like what David
    Friedman talks about sometimes, early committment to later behavior which, at
    that later time, might seem irrational, can as a whole be rational. Foreclose
    your options yet become better off.

    -xx- Damien X-)



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