Jane is the general manager at a new caf and wants to hire a few baristas. The

Jane is the general manager at a new café and wants to hire a few baristas. The going rate for baristas in the area is

$14.25 per hour. Jane has heard that many of the local coffee shops have high turnover with baristas ghosting them—simply not showing up for their shift and never coming back. Jane starts to put together an advertisement to hire baristas for $14.25 per hour, but changes her mind and lists the wage she’ll pay at $16 per hour. Why would Jane pay $14.25 per hour? What’s the rationale for paying

$16 (or any wage higher than $14.25)?