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Seinfeld Economics: The Bris

by Linda Ghent

Compensating differentials represent wage premiums for unpleasant aspects of a job. Jobs differ along several dimensions. In equilibrium, labor markets establish wages that tend to make different jobs relatively close substitutes at the margin. 

The labor market is the market in which workers compete for jobs and employers compete for workers.

Seinfeld: The Bris

In the comedy clip at the end of episode, Jerry says that the amazing thing is that “for every job, no matter how objectionable, there is someone there to do it.” Properly functioning markets ensure that all jobs get filled; often to do this certain jobs require an additional premium to compensate for risk or other unpleasant dimensions of the job.

from Seinfeld, Season 5 (1993)
Creator: Larry David & Jerry Seinfeld
Posted by Linda Ghent