the economy as a whole, because as long as employers raise wages, more output and employment can be created, and overall social well-being will be improved as a result. At this time, if the government sets a minimum wage higher than the employer's salary, not only will it not harm employment, but it will increase employment, which is consistent with David Card's findings. However, the traditional single-buy market hypothesis has suffered considerable resistance. The most intuitive thing is that it is obvious that there is not only one employer in the market. However, the current academic definition of sole purchase is no longer limited to a single employer, but as long as the employer is not a "price taker", but faces a "positively sloped labor supply line", that is, a high salary.
More labor can be found (if it is a perfectly competitive market, employers will only face a market price equal to the labor value, employers can’t give more, and no one will come if they give less), then such a labor market will It has the characteristics sms services of a single-buy market. In fact, many analyses in mainstream economic circles have pointed out that there are many characteristics of the labor market that may lead to the purchasing power of employers (a labor supply line with a positive slope). For example: transportation costs make it
more difficult for workers to work far away from home; information costs make it difficult for workers to understand the specific situation of the job before they actually take a job, so that it is difficult to form a wage asking price that truly reflects their opportunity cost; the job search process takes a lot of time and energy, limiting the number of jobs each worker can carefully consider and apply for, rather than choosing between all available job opportunities; the “non-compete clause” prevalent in many industries restricts workers from joining the same industry after leaving the company The employment of rival companies in China has also limited the alternative options for labor.