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> By definition, a shortage of labor sellers means labor sellers have an advantage in negotiations.

This is untrue. 1) Employers have more information about the current situation than applicants, and 2) employers collude, applicants don't.



True, the context I intended was where all participants have information about the market. If either party has incomplete or inaccurate data, then there exists arbitrage opportunity.

Hence the importance of price transparency, and laws requiring a minimum pay figure are a start.




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