He writes,
When free-market types like myself hear about a worker who is made uncomfortable by inappropriate language or inappropriate physical contact on the job, our usual response is: quit. You don’t have to work for a crude, or worse — abusive boss. And of course, you are free to quit, and many do. But what is clear from the MeToo moment we’re in is that many people couldn’t quit. Or at least they felt they couldn’t. They stayed in abusive work relationships. Women privately shared information about who to stay away from and who not to be left alone with. But they often stayed on the job and endured humiliation, gross discomfort and sometimes, much worse.
It’s a long, sensitive, thought-provoking essay. The issue is whether workers are only treated well if employers are “nice,” either by choice or by government dictate, or whether the forces of competition are sufficient to protect workers. My thoughts:
1. Russ brings up sexual harassment in Hollywood, which indeed does look like exploitation. I do not see how this phenomenon would have developed if there weren’t a very high ratio of wannabe actresses to prominent film producers.
2. I think that as the economy becomes increasingly specialized, it becomes harder for competitive forces to work in employer-employee relationships. The specialized worker has fewer firms to choose from, and the firm needing specialized skills has fewer workers to choose from. This creates more scope for social norms and idiosyncratic negotiating skills to affect compensation levels.
3. The phenomenon that I talked about, consolidation, also is a factor. If my hypothesis is correct that differences in executive skill at overseeing and deploying software are driving consolidation, then I would expect the high-caliber management teams to attract the best workers, in part because they can afford to offer higher compensation. But the strong firms also have leverage, because workers want to affiliate with them for better long-term career development. Meanwhile, I would expect workers at firms with mediocre management to have no bargaining power, assuming that they do not meet the standards of the stellar firms. Poorly-managed firms are threatened with extinction, which gives their workers no scope for demanding more compensation.
4. Getting back to social norms, I hope that going forward women feel empowered to say no to harassers and to get help from HR departments or Boards of Directors in getting harassers removed. But I do not think that public shaming ought to be the weapon of first resort.
5. I am worried about what can be defined as harassment. Back in the 1950s, there was a presumption that “nice girls don’t.” A man had to be patient and seductive in order to get consent. With the sexual revolution, there no longer was a presumption that men had to be patient. But “seduction” minus patience is hard to distinguish from harassment. Some people, especially on college campuses, think that the solution is to make the process of obtaining consent formal to the point of being legalistic. I think we would be better off, in a lot of ways, if instead we could somehow get back to requiring patience.