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A higher supply of cheaper labour does contribute to the reduced pay but by far the biggest influence is the stagnation of wages over those 3 decades (i.e. it's
by michaelscott 8y ago
A higher supply of cheaper labour does contribute to the reduced pay but by far the biggest influence is the stagnation of wages over those 3 decades (i.e. it's not that wages have gone down, they just largely haven't gone up).
Average, inflation adjusted wage growth has been projected as low as 0.2% year on year in some cases, and this affects most forms of work not just the low end.
- laughingman2 8y agoWith all the productivity gains, if the wage growth has been far less, it's clear who is to take a huge part of the blame, hint hint, big corporations who also evade paying taxes. Its almost as if they don't want a vibrant middle class to spend, thereby dooming themselves in the long run with stagnation.
- amf12 8y ago> A higher supply of cheaper labour does contribute to the reduced pay but by far the biggest influence is the stagnation of wages over those 3 decades. This only applies to low skilled, replaceable jobs and certainly not the high skilled ones. Because eventually there is a demand for better employees (which naturally comes with experience and skills) which leads to higher wages and wage growth. Look at what's happening in SV.