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This just sounds like a limited form of Baumol's Cost Disease.
by scarejunba 7y ago
This just sounds like a limited form of Baumol's Cost Disease.
- usaar333 7y agoThat's actually a much better analogy. Companies at high scale can achieve higher productivity per developer every year. Not at high scale? (say a one-off consulting project). Sucks for you -- labor market is surging from the high scale company's productivity improvements. Be prepared for your labor costs to go up much faster than inflation.
- jb775 7y agoBut software developer productivity HAS increased over the years, primarily due to improved tools they have access to. I think developers are somewhat blind to this fact however, because the skill required to operate said tools hasn't increased in proportion to the productivity output gained. Think about hunting with a bow & arrow vs hunting with a spear. With a bow & arrow (the improved tool), you're able to bring back more meat with less effort, but the productivity of each hunt is higher to the stakeholders (the people eating, in this situation). If it's still very difficult to find hunters with the baseline skills required to not only operate a bow & arrow, but to complete the other necessary aspects of hunting (ability to track the animal, carrying it back, etc), then it makes sense that their pay would continue to increase.