Don't forget that some industries can't exist if there aren't enough workers. Density of human capital is sometimes a prerequisite to a sustainable business. F

Don't forget that some industries can't exist if there aren't enough workers. Density of human capital is sometimes a prerequisite to a sustainable business. For example, silicon valley would be much smaller and the net value of companies much lower if not for the global inflow of talent. Even if the average wage was reduced (and I doubt it, I think it's only likely for commodity labour, scale enables specialization which pays more) the total wage is much higher. You also need to look at the displacement effect - what happened to jobs with other sets of skills that now have fewer workers.