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> Now the person with a University degree can command a much higher wage since his skill is in great demand. This does not necessarily follow from the previous

• ars 5y ago
  It's pretty much automatic. If there's more demand than supply, then companies will offer more money to hire this person with a university degree. The only way you keep this person's wage down is increase supply - have lots of people with university degrees. But that's not the real world, in the real world most people are not able to get a degree.
  • sangnoir 5y ago
    > The only way you keep this person's wage down is increase supply - have lots of people with university degrees. Again, the second part of this statement does not necessarily follow from the first. There are countless ways of tweak supply/demand of McJobs, such as low minimum wages resulting in a glut of retail locations , changing total hours non-degreed workers (read high-schoolers) can work, adjusting rules on temp workers, community college intakes, etc. There a many variables, and increasing minimum wage impacting a subset of (mostly unskilled[0]) workers doesn't automatically mean an increase in income for skilled jobs. 0. I dislike the term, but it conveys my intended meaning. "Jobs that require no prior training" is unwieldy.