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Not really, that is just a lower bound. Companies are incentivized to pay the least amount possible for labour regardless of productivity, so long as it profitable. If a company pays somebody 100k a year, it means that (1) the value produced by this person is larger than 100k and (2) the company is confident that they can find somebody else to do the job for 100k in case the worker asks for a raise.


> the company is confident that they can find somebody else to do the job for 100k in case the worker asks for a raise.

More like, the company is willing to pay more but won't do so until the worker asks for a raise, in my personal experience.




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