3 ms·
So do doctors, as per the example in the article, yet the barrier to entry is much higher for them. This is not about value created -- it's about the dynamics
by twblalock 7y ago
So do doctors, as per the example in the article, yet the barrier to entry is much higher for them.
This is not about value created -- it's about the dynamics of the labor market. If there were a bunch of people who could create as much value as you, but demand a lower salary, companies would hire them instead and pay them less.
- aerovistae 7y ago... But there aren't.
- twblalock 7y agoThe article raises the question of why we can't explain the absence of such people, given how much easier it is to at least get your foot in the door in tech compared to other professions like medicine and law.
- tick_tock_tick 7y agoMaybe their assumptions are flawed?
- millstone 7y agoIt is about value created. A programmer who can find a way to extract $1 per year, from a million users, is worth $1m. But doctors are constrained by their personal 1-1 relationships: no doctor can handle a million patients.
- twblalock 7y agoIt is about supply and demand in the labor market, full stop. People aren't paid based on the value they create. They are paid based on how hard it is to find other people who can do the same thing.
- jfim 7y agoPeople are paid based on both the value they create, and how hard it is to hire them. If someone being hired will provide $10 of value for the company, then that is the ceiling for their wages. On the other side, the floor for their wages is the lowest price sometime will accept to provide that value to the company.