• Journal of the Korea Academia-Industrial cooperation Society
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• v.15 no.9
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• pp.5487-5494
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• 2014

This study examined the relationship between income and the value of leisure to develop a more accurate model of the labor market without necessarily losing the primary merit of the received model. Moreover, with an improved understanding of the labor market dynamics, it can be seen that progressive era labor market legislation, which was designed to mitigate the effects of the bargaining power inequality in low wage labor markets, was in fact based on sensible economic foundations. These low-wage dynamics present an example of a positive feedback system or "vicious circle" at work in the economy. The market dynamics of the low wage sector push the wage away from the range that is consistent with a self-regulating market.