4 ms·
I think what he means is: More people hava a college degree. That means more people are in competition to get "white collar" jobs. More competition on the "whit
by maze-le 11y ago
I think what he means is: More people hava a college degree. That means more people are in competition to get "white collar" jobs. More competition on the "white collar"-job market, creates incentives to lower the cost per person (There is a bigger share of people willing to be paid less than a generation before). Therefore the average salary per person drops.
- guscost 11y agoAlso, "more productive" means fewer people are needed to do the same amount of work, so labor prices are being pushed down from the demand side too (as long as the total work being done doesn't keep pace, i.e. low growth).