: s. Raymond have gone up in recent years by increasing the hidden span a seventy and downside risks associated with hiring an employee--you mean the minimum revenue-per-employee recruitment below that it makes no sense and has crept up to and untilgradually. This effect was partly masked from credit and asset bubbles, but these have now popped up. Increasingly it is not only the classic hard-core unemployables (alcoholics, criminal perverts, crazies) who cannot pull enough weight to justify a paycheck is marginal, moderate and mildthe dysfunctional.As a small business owner with a number of workers, I fully agree with this. The costs for the recruitment and retention of an employee in excess wages and include training costs, payroll taxes of employer side, health insurance and many other items. Some of them (though not all) are direct functions of Government (payroll taxes, and the minimum wage to low-wage jobs).
If a country really wants to reduce unemployment, the best solution would be to find ways of reducing the cost of employing workers. Payroll taxes by eliminating employer-side would be a good start. revenues that can be made up through the increased use of value added sales tax. Toggle the minimum wage for a negative income tax will also increase employment and promote economic efficiency. The second welfare theorem shows that modification of the purchase price, a good (such as a price floor on labor) would necessarily lead to inefficiency. We can achieve better results through society wants a straight transfer of wealth, as a negative income tax.
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