Does the market really pay you what you’re worth? (with Marshall Steinbaum and Saru Jayaraman)

The theory of marginal product of labor says that every worker is paid exactly what they’re worth—the value that their labor generates. Employers cite marginal productivity to legitimize paying the lowest wages possible, but it’s just another trickle-down scam. Economist Marshall Steinbaum and food labor expert Saru Jayaraman join us this week to expose the lie of marginal productivity and show how it’s been used to exploit workers for centuries. nMarshall Steinbaum is an Assistant Professor of Economics at the University of Utah and a Senior Fellow of Higher Education Finance at the Jain Family Institute. He studies market power in labor markets and its policy implications. He was previously a Senior Economist and Fellow at the Roosevelt Institute, and a Research Economist at the Center for Equitable Growth. nTwitter: @Econ_MarshallnSaru Jayaraman is the Co-Founder and President of the Restaurant Opportunities Centers United (ROC United) and Director of the Food Labor Research Center at the University of California, Berkeley. Saru authored ‘Behind the Kitchen Door’, a national bestseller, and her most recent book is ‘Forked: A New Standard for American Dining.’ nTwitter: @SaruJayaramannFurther readingnNo, Productivity Does Not Explain Income: https://evonomics.com/no-productivity-does-not-explain-income/ nROC United Diners’ Guide App: https://rocunited.org/diners-guide/nSaru Jayaraman: How Restaurant Workers Are Inheriting a Legacy of Slavery in the U.S.: https://bioneers.org/saru-jayaraman-restaurant-workers-inheriting-legacy-slavery-u-s-ztvz1712/nEvidence and Analysis of Monopsony Power, Including But Not Limited To, In Labor Markets: https://www.ftc.gov/system/files/documents/public_comments/2018/08/ftc-2018-0054-d-0006-151013.pdfnAntitrust and Labor Market Power: https://econfip.org/wp-content/uploads/2019/05/Antitrust-and-Labor-Market-Power.pdfnWhy Are Economists Giving Piketty the Cold Shoulder? nhttp://bostonreview.net/class-inequality/marshall-steinbaum-why-are-economists-giving-piketty-cold-shoulder

BONUS: Saru Jayaraman – Unedited Conversation

Food labor expert Saru Jayaraman joined us earlier this month to expose the lie of marginal productivity, and to reveal how it’s used to take advantage of workers. For the sake of time, we cut a fascinating tangent on the minimum wage and the restaurant industry from that episode, but it’s so insightful we just had to share it with you. Catch it here, with Saru and Goldy’s full conversation. nSaru Jayaraman is the Co-Founder and President of the Restaurant Opportunities Centers United (ROC United) and Director of the Food Labor Research Center at the University of California, Berkeley. Saru authored ‘Behind the Kitchen Door’, a national bestseller, and her most recent book is ‘Forked: A New Standard for American Dining.’ nTwitter: @SaruJayaramannSaru Jayaraman: How Restaurant Workers Are Inheriting a Legacy of Slavery in the U.S.: https://bioneers.org/saru-jayaraman-restaurant-workers-inheriting-legacy-slavery-u-s-ztvz1712/

Re-post: Does the market pay you what you’re worth? (with Marshall Steinbaum and Saru Jayaraman)

The theory of marginal product of labor says that every worker is paid exactly what they’re worth—the value that their labor generates. Employers cite marginal productivity to legitimize paying the lowest wages possible, but that’s just another trickle-down scam. Economist Marshall Steinbaum and food labor expert Saru Jayaraman expose the lie of marginal productivity, and show how it’s been used to exploit workers for centuries.

Marshall Steinbaum is an Assistant Professor of Economics at the University of Utah and a Senior Fellow of Higher Education Finance at the Jain Family Institute. He studies market power in labor markets and its policy implications.

Ending the tipped minimum wage (with Saru Jayaraman)

In most states, tipped workers are not subject to the minimum wage. Why? Because it’s legal to pay tipped workers a subminimum wage as low as the federal minimum of $2.13 per hour. As long as any worker in the country can be paid less than the minimum wage, the minimum wage is meaningless. Saru Jayaraman, a leader in the national fight for one fair wage, lays out the path forward.