It follows that the effective minimum wage is the only one that counts. This means that if the minimum wage was set at 50 per cent of the market rate, doubling it would have no effect on the demand for labor. This is the kind of thing that misleads some observers into thinking that the State can set minimum wages without damaging employment. Earnings are not distributed in free markets, they are earned. By cutting job-destroying labor costs more people are hired, payrolls expand and output rises.
Education has nothing to do with wages rates.
As for training, someone should remind Henderson that it was the destructive wage-fixing activities of his former union employers and mates that virtually destroyed Australian apprenticeships. Now every worker tends to receive the full value of what he produces. So some workers are low-paid because the value of their products are low. As we have seen, effective minimum wage laws can only raise real wages by reducing the labor supply, i.e. causing unemployment. In effect, incomes would be 'distributed' from those who lost their jobs to those who got to keep theirs.