Majors are above "market rate"?

Hardly...

If your only considering the US, well then they set the market rate.

And if you compare international and contract jobs they're either on par or lower than market rate.

How much do you think a E190/A320 captain is worth from and international perspective? If anything the "majors" are still below market rate.

Overall theory is correct though, the regionals are obviously not paying market rate. We are all trapped by the seniority system, in some ways it benefits certain people, but overall pay rates it doesn't help at all. Bedford would love to be hiring FOs at 40-50k right now, but he doesn't want to at the same time double CA pay.