It’s pretty hard (impossible?) for the market to reach an efficient outcome with asymmetric information. Sure, there will always be unobserved variables lid you indicate, but the opaque practices currently employed contribute to societal problems.

However, that same opacity gave me some peace of mind at a previous employer. I had very cutthroat coworkers. I was targeted, in part, for just the suspicion that I made more than other people. Didn’t matter if it was less than a quarter per hour. Didn’t matter when they all eventually were promoted above me and made more, either.

I don’t know how to square those two. On one side, market regulation ala talking to employees in search of abuses and mistreatment may have helped me. On the other is the persistent pressure to have the least government possible.