[thewakalix]

No, it’s not more accurately described as arbitrage. Arbitrage involves buying something and then selling it for a higher price in a different market. That might describe something like a temp agency, which buys labor from employees and then essentially sells it to other companies. It does not describe most businesses, which directly use the labor provided by their employees rather than reselling it.

I agree that “price discrimination” isn’t quite right; it’s more of a metaphor. It works if you imagine that companies are selling money that is bought for the price of labor. In different markets, people will accept more or less money for the same labor, or equivalently spend less or more labor for the same money, which allows for price discrimination.