Wage Arbitrage

"So, arbitrage. Talk about adrenaline, huh? What do you think is the most important quality for a great arbitrager?"
--Tess McGill (Working Girl)

Larry Elder concludes what any reasoned person would conclude. If people were being paid less than their true market value, then employers would hire them.

"We’re going to end the absurdity of women making 80 cents on the dollar compared to men."
--@SenSanders 11/27/19

Women make 80cents on the dollar compared to men FOR DOING THE SAME WORK? REALLY? Then why don't employers fire men, hire women--and pocket the labor cost savings?

— Larry Elder (@larryelder) November 29, 2019

In free markets driven by the profit motive, employers can't afford to discriminate. They will arbitrage any wage discrimination away to acquire the extra productive capacity.