3 ms·
Baumol's effect isn't meant to explain the cost of tech workers. Software has an incredibly variable ratio of labor in to economic value out, so it is the thing
by mrfredward 7y ago
Baumol's effect isn't meant to explain the cost of tech workers. Software has an incredibly variable ratio of labor in to economic value out, so it is the thing that causes "cost disease" in other industries, not an example itself.