Most things experience higher demand when the clearing price is lower. I expect that jobs (or at least “labor hours”) would be firmly in this set.
The mechanism would be some business somewhere would have thousands of hours of tasks that were worth around $12/hr to the business. If the market wage was $15/hr, that work doesn’t get done. If the market wage is $8/hr, it gets done, at least to a much greater extent than in the $15/hr case.
Comments
Most things experience higher demand when the clearing price is lower. I expect that jobs (or at least “labor hours”) would be firmly in this set.
The mechanism would be some business somewhere would have thousands of hours of tasks that were worth around $12/hr to the business. If the market wage was $15/hr, that work doesn’t get done. If the market wage is $8/hr, it gets done, at least to a much greater extent than in the $15/hr case.