From Arnold Kling:
[E]mployment is closer to a relationship than to a market. When you are making hiring and firing decisions, small differences in the wage rate do not mean much. If you really don't want to go out to eat with a guy, how much difference would it make if he offered to split the check 60-40 instead of 50-50? By the same token, if you really do not want to hire someone, how much difference would it make if that person would take a 10 percent lower wage?
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