> Empirically there is plenty of evidence that given a choice, many businesses would rather maintain the power differential and complain about "lack of applicants" than increase pay and suffer a corresponding diminution of authority.
Why does any company every pay more than the legally required minimum, then?
if you have 0 employees and nobody will work for you until you raise your pay to three times the legally required minimum, you raise because otherwise there is no power differential.
If you have 10 employees and you want to hire 3 more but to do that you have to increase their pay by 25% in relation to others then you might decide not to because this decreases power for everyone (should they find out what you're paying these others)
Why does any company every pay more than the legally required minimum, then?