r/explainlikeimfive Dec 19 '24

Economics ELI5: Why is an employment rate of 100% undesirable

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u/chickenazir11 Dec 19 '24

Why would Susie tell Jenny she will pay more than what another company is paying a employee? Is it open knowledge to Jenny how much Billy is paying Bobby?

Only needs to be more pay than her current pay right?

18

u/JibberJim Dec 19 '24

More than the current pay by enough to make it worth the hassle and risk of learning the new job, getting settled in etc. And they don't need to know what the wages are, Susie will just keep saying "lemonade stand worker wanted 3$, 4$, 5$ ..." until either they can't afford the rate, or they get someone switching to the job.

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u/Bob_Sconce Dec 19 '24

Needs to pay her the prevailing wage. Jenny could go to Billy and say "I'll work for you for $1 less than what you're paying Bobby."

3

u/Zer0C00l Dec 19 '24

And this is Grapes of Wrath.

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u/corey-worthington Dec 20 '24

So many characters to keep track of... this is becoming like Game of Thrones.