"Red Pill Magazine" Column "A Person in the Field"

March 25, 2025

Foreign Domestic Helpers' Wage Cap: Another Proof of Market Disruption

The editor-in-chief discusses the minimum wage for foreign domestic helpers. As is well known, the market price is nearly HK$5,000, far higher than the official price. In other words, the minimum wage is not useless; the simple model in textbooks suggests this is the result of demand exceeding supply for foreign domestic helpers. But how are supply and demand determined?