Let us suppose that the net effect of these various considerations is that in a given market the average hourly productivity rates of class-C workers (and hence their average free-market wages) lag behind those of the other workers. Suppose further that regulators, guided by the simplistic notion of "equal pay for equal work" rather than the free-market's more sophisticated principle of "equal pay for equal productivity," legally require the firms in that market to pay class-C workers the same wage rates as their co-workers. This requirement, if implemented by itself, effectively imposes an above-market minimum-wage control for class-C workers. In order to maximize their profit, therefore, employers must dismiss (or cease to hire) those class-C workers whose productivity rates fall below the legal requirement, thereby leading to unemployment among these workers (pp. 4.11:28-35).
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