4 ms·
Simple thought experiment. Firms will continue to hire until wage = marginal productivity .. otherwise, you leave money on the table. Usual BS assumptions on pe
by brutus1213 5y ago
Simple thought experiment. Firms will continue to hire until wage = marginal productivity .. otherwise, you leave money on the table. Usual BS assumptions on perfect information/competition, cetrus paribus, and all that stuff.
- HWR_14 5y agoIn your simple thought experiment, why are wages going up for that one firm? You're hiring more people, not raising the wages of the existing people. And I'm not sure why you think unit economics apply to software with it's almost 100% fixed costs.