[lbo-talk] Businesses are refusing to hire the unemployed,

Doug Henwood dhenwood at panix.com
Thu Feb 17 07:36:26 PST 2011


On Feb 17, 2011, at 7:35 AM, Wojtek S wrote:


> But what not hiring the "reserve army?" From an economic point of view, the
> "opportunity cost" of an employed person is much higher than that of an
> unemployed one. So one would think that ceteri paribus the bosses would
> prefer hiring a currently unemployed person because they could get away with
> paying him/her less, no? What gives?

The standard line is that the long-term unemployed lose skills. I.e., they're damaged goods.

Doug



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