Workers trapped in low-wage jobs due to high mobility costs.
The article presents a model of the labor market combining ideas from Marx and Keynes. It shows that when workers have difficulty changing jobs and employers control their effort, workers may end up with very low job satisfaction, even at subsistence levels. This is because employers have little incentive to improve working conditions when there is no excess demand for labor. The model suggests that in such a scenario, real wages are fixed and workers may not benefit much from their efforts.