In the News
The Labour Market for Chefs - Supply Drying Up
This is a really nice article about the operation of a particularly unusual labour market, the market for chefs. There are lots of applications here, derived demand being the most obvious.
I'm intrigued by one thing - despite Alexis Gaulthier offering an apparently generous bonus to new recruits, the article argues that if he had offered £10,000 rather than £1,000 it would have made no difference.
And perhaps there's some truth in this in the short-run, but in the longer-run higher wages for chefs would certainly have an effect on the supply of labour. At least, that's what economics would tell us.