People are often underpaid compared to market rate because jobs are not a perfectly liquid market. This is due to a number of factors: family situation, workpla

People are often underpaid compared to market rate because jobs are not a perfectly liquid market. This is due to a number of factors: family situation, workplace social bonds, confidence in one's abilities, fear of change. It is very naive to believe that the labor markets are efficient. This is why some companies are able to take advantage of employees and get away with underpaying them.