Yet Lowenstein states that “there is a strong economic and moral case for a slow and steady increase.” The free market argument suggests that the classic supply and demand model taught in economics is not representative of the way the labor market behaves. People behave according to what economist and Nobel Prize winner Daniel Kahneman, co-author with Jack Knetsch and Richard Thaler, wrote in a 1986 article in which he suggested that there is a notion of fairness that guides how workers accept different levels wages. There is no so-called reserve salary, which means that a bricklayer, for example, will have a lower and acceptable salary than a doctor. There is a neutral reference point that influences how workers will or will not accept employment. Similarly, during a minimum wage increase employees will feel underpaid if they do not earn above the minimum wage while they were working above the minimum wage before the minimum wage increase.
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