> Subsistence wages are set by the value of the "outside option" for workers in undeveloped countries, which is subsistence farming. As a country develops, labo

> Subsistence wages are set by the value of the "outside option" for workers in undeveloped countries, which is subsistence farming. As a country develops, labor productivity increases and wages rise, until companies are willing to switch to lower productivity but cheaper workers. This cycle ends once the supply of subsistence wage workers runs out. As I've said in my original post, this just means that labor force is now sourced from another country. Subsistence wages are just the minimum you can possibly pay someone, and I don't see how this will stop being a thing unless governments across the board make it so. Happy to be proven wrong about this.