PEOPLE RESPOND TO INCENTIVES. King at SCSU Scholars finds a news report from Minneapolis with a misleading headline, suggesting that the Minnesota budget woes and stingy pay increase were behind raids on Minnesota faculty, while the main article listed reasons other than salary behind those job changes. The deeper connections require further investigation. Perhaps the salaries at Minnesota public universities are not that much different from those elsewhere. But if those other reasons include resources not available in libraries, or good colleagues leaving, or no paper available for copying articles or for distributing assignments, it is as if the university is cutting salaries. It would however take too many column inches for a newspaper article to explain the idea of "compensating differential."
In a related post, Right Wing News is having some fun with the idea that absent minimum wage legislation, employers would not pay wages. Some commentators (109 comments at this writing) are not buying the idea.