You are currently browsing the tag archive for the ‘labor laws’ tag.

Arguing for more generous mandatory vacation laws, Ezra Klein writes:

Which goes to the reality of the situation, which is not that workers and employers “flexibly choose an arrangement that works for them.” Employer-employee relations are rarely so idyllic. Broadly speaking, employees with the power to demand more paid vacation do so, and employees without the power to demand more paid vacation get less — or in some cases, no — paid vacation. A law guaranteeing paid vacation would primarily tilt the playing field toward low-income workers, rather than against them, as is the case now.

The problem with this is defining the employer/employee “power” in terms of vacation setting only. ┬áIf an employer has the bargaining power negotiate a deal where the employees total compensation is less than their marginal product of labor , then they will have the power to negotiate lower wages when laws mandate less days of work. Or they can just take those hours back by negotiating longer work weeks, shorter breaks, working harder, or something like that. Unfortunately you can’t write a law mandates wages be equal to marginal product of labor, and there will be unintended consequences of any law that attempts to restrict hours whereby employers cash in their bargaining power in some other form.

UPDATE: And if you think only zany libertarians believe that labor markets work, here is Yglesias arguing basically the same thing several years ago.

Follow Modeled Behavior on Twitter

  • @yeselson is the idea in my previous two tweets crazy? 15 minutes ago
  • So u ask WMT workers to buy ur mutual fund, and the fund buys huge share of WMT and puts people on the board to push worker friendly policy 17 minutes ago
  • If I ran a giant union, I'd start investment arm that sought worker $ w/ 2 goals: both ROI and push companies for pro labor policies 19 minutes ago

Get every new post delivered to your Inbox.

Join 197 other followers