Borjas Rectangle Theory: Difference between revisions

At that point, I also became aware of what I have termed the '''Borjas Rectangle Theory''': that is that employers generally, in free market economies, when they’re complaining about labor shortages, are actually trying to transfer wealth from labor to capital, complaining instead that there is a small inefficiency that needs to be rectified, which we might call the Harberger Triangle. So that is, employers claim that there’s a small inefficiency, but in fact, they’re seeking large transfer payments from the vulnerable to the well-heeled.