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Joe's avatar

I don't dispute that, but I can't see this effect being especially large. The greater the difference between what a meek docile person is getting paid and their market rate, the greater the incentive for competing employers to seek them out and make them a better offer. For this docility factor to pose a great obstacle to using wages to determine productivity would require huge deviations from market rates that just don't seem plausible to me.

Perhaps the people who would produce the most successful ems would tend to be drawn from those top earners who are slightly more docile than the rest, all else equal. But perhaps not - as Robin argued there are disadvantages to docility too, in that a docile person is less likely to provide useful criticisms or make decisions they know are correct but that their boss might disagree with.

EDIT: Additionally, if you think you know by how much docility reduces a person's wages, you can work what their wage would have been if they weren't docile. It could well be that even making this adjustment would still result in most counterfactual high earners being non-docile, if docility does actually have negative effects on productivity separate to its hypothesised wage-lowering effect.

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Stephen Diamond's avatar

Do you dispute that, all else being equal, docile workers will get paid less for the same work? (By definition, they fail to assert their interests. Since wages are the result of a conflict in interest, this is bound to be significant. - See "The Dismal Employment Picture: A Social-Status Theory Explanation - http://juridicalcoherence.b... ; concerning docility as a cause of the low wages in the service sector ]

Then, if you increase the availability of docile workers, you will find it easier to find enough docility to compensate for more of its adverse correlates. This will lower your wage bill.

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