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Rate of pay is empirically determined by the intersection of supply and demand for that job, not by how important a particular person or group thinks a job ough
by pjlegato 5y ago
Rate of pay is empirically determined by the intersection of supply and demand for that job, not by how important a particular person or group thinks a job ought to be considered a priori.
Where supply is much larger than demand -- that is, where many people can easily replace the person doing the job and perform similar work -- wages are low. When not many people can do a demanded job, wages are high.
Note that I am not making any moral claims about this fact being good or bad; just pointing out that it is indeed an objective fact.
This dynamic notably holds true even in non-capitalist economic systems, such as in Communist countries where the rate of pay is legally fixed at the same level for all jobs: people simply barter out of band with non-monetary forms of value transfer (блат) instead, to compensate for the inability to use money to find the supply/demand intersection.
- effingwewt 5y agoSupply vs demand works until WFH begins to even the payscale. SEs everywhere started screaming about pay reductions. There is no lack of SWEs, that is now more than apparent. It's simply the flavor of the decade, just like last bubble it was website/graphics design. Bubble is bursting IMO.
- sokoloff 5y agoI think the bubble is shearing perhaps. The top wages for SWEs in many markets seem to be going up and substantially so, while the wages for the broad middle of the market in globally high-cost locations aren’t going up and, as you observe, are at risk of falling as/if WFH-driven globalization accelerates.