Health insurance, fairness norms, and unemployment

posted by
August 23, 2011
by Bryan Caplan  
Posted in Commentary

"Nominal wages rarely fall -- even when there's high unemployment. Part of the reason is regulation, of course. But even under laissez-faire, employers have to cope with human psychology. Almost all workers think that nominal wages cuts are unfair. And while employers might be tempted to say, 'Fairness be damned,' they have to face the fact that hurting worker morale hurts productivity and profits." (08/23/11)  

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