In my European mind (I have 25 mandated days off per year), if there was not a mandatory paid vacation limit two things would happen:

1. Further exploit desperate people since those that don't need to work at any cost would steer clear of jobs that have 0 holidays. 2. You would further penalize people with families where both parents work. It is well understood that if your kid is sick you can't really use your sick days and so must use your PTO days. Having 0 available days doesn't play well with having kids (personal experience).

And finally, having mandated PTO allow you to actually take holidays. I heard too many times of companies that offer unlimited PTO and when the employer tries to take some they sabotage him/her or plainly threaten his/her job security.

The easiest answer is yes, since many Americans currently earn minimum wage with no paid vacation, minimum wage with mandatory vacation would be an increase in total compensation. I don't know how paid leave regulations impact wage growth in general, I'm sure there is research on this but I didn't immediately find anything.

Another way to think about it: why do we have building codes? We don't want to incentivize builders to cut corners that would risk an electrical fire or falling down in an earthquake or something in order to offer a cheaper price, so we make it illegal. If unsafe buildings are allowed, it makes it difficult for safe builders to stay in the market. Similarly, we don't want to incentivize workers to sell their labor with zero leave in order to offer a cheaper price, because that risks unhealthy and insular communities (literally unhealthy if people can't take sick leave), poor mental health, unhealthy childcare practices, an unhealthy civic environment if people can't take time off to vote or volunteer, etc. The labor market is competitive and people will sacrifice paid leave if they have to, because they need money to live, so we should make it illegal to remove the incentive.

Wages and time off are not frictionlessly interchangeable in the vast majority of jobs. Mandating minimum levels for both helps make sure people have access to both.

> total compensation will be set based on the market value of your labor.

No, you do not want that.

The market value of most people's labour is very close to zero.

Left to the market most of the population would live just below starvation, a very small group of owners would live very well, and a small group of artisans would do OK supporting the tiny group.

That is where many countries are heading

Unless you have a union, there's a dramatic power imbalance between you (the employee) and the employer at the negotiating table. I'd urge you to read up about the 19th century labor movement and what conditions prompted it.

For a lot of us, work is not our life. Turns out that most people really want a paid vacation. Smart Capitalists know that it's easier to extract value from workers with higher morale.

If you would rather trade your paid vacation for an extra week of pay, I am sure you and your boss can work it out. Companies pay out unused vacation all the time. Just don't ruin it for the rest of us!