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The evidence is an informal thought experiment: if the salary was $100 million for each position, they would have every role filled. Therefore, there must exist

by teeray 3y ago

The evidence is an informal thought experiment: if the salary was $100 million for each position, they would have every role filled. Therefore, there must exist a clearing price for each role between $0 and $100 million such that each role would be filled at or above it (and below which it would not be filled). If there are unfilled roles, it is because the role is below the clearing price. EDIT: all other effects can be ameliorated eventually by paying more. If there isn’t enough specialized labor for the role, the unspecialized labor will be incentivized to specialize themselves. If there isn’t enough labor in the local market, they will move there.

tzs 3y ago
> The evidence is an informal thought experiment: if the salary was $100 million for each position, they would have every role filled. If the salary was $100 million for each position they might fill every position--but could they keep them filled? If I were getting paid $100 million a year a single month's salary after taxes is enough to retire on at well above my current standard of living. I suspect it would be hard to retain people if they have the option to at any time quit and will never need to work again.
- lotsofpulp 3y ago
  The other lever is quality of life at work. The relevant measure is the ratio of pay to quality of life at work, not just pay.
- teeray 3y ago
  What happens after the position is filled doesn’t matter for this argument. The point is that there is a price that will cause somebody to say “this is a good deal for me” and fill the position. If there’s a better deal somewhere else, they’ll go do that instead.
red-iron-pine 3y ago
> EDIT: all other effects can be ameliorated eventually by paying more. If there isn’t enough specialized labor for the role, the unspecialized labor will be incentivized to specialize themselves. If there isn’t enough labor in the local market, they will move there. Proof in the pudding -- working at oil / gas / mining camps in Canada. All you need is the ability to climb a ladder and be a proud 8th grade graduate; pay is $100k+ CAD, and often much higher for skilled or specialist roles with degrees and certs; easily 200k+ in some cases. No shortage in finding bodies. Working conditions are brutal, long times away from home, and no shortage of Dear John letters, but there wasn't a shortage of labor. When there is good $$$ on offer, people will line up around the block. Esp. if all it takes is a 2-week course at the local community college.

by teeray 3y ago

tzs 3y ago

> The evidence is an informal thought experiment: if the salary was $100 million for each position, they would have every role filled. If the salary was $100 million for each position they might fill every position--but could they keep them filled? If I were getting paid $100 million a year a single month's salary after taxes is enough to retire on at well above my current standard of living. I suspect it would be hard to retain people if they have the option to at any time quit and will never need to work again.

lotsofpulp 3y ago
The other lever is quality of life at work. The relevant measure is the ratio of pay to quality of life at work, not just pay.
teeray 3y ago
What happens after the position is filled doesn’t matter for this argument. The point is that there is a price that will cause somebody to say “this is a good deal for me” and fill the position. If there’s a better deal somewhere else, they’ll go do that instead.

red-iron-pine 3y ago

> EDIT: all other effects can be ameliorated eventually by paying more. If there isn’t enough specialized labor for the role, the unspecialized labor will be incentivized to specialize themselves. If there isn’t enough labor in the local market, they will move there. Proof in the pudding -- working at oil / gas / mining camps in Canada. All you need is the ability to climb a ladder and be a proud 8th grade graduate; pay is $100k+ CAD, and often much higher for skilled or specialist roles with degrees and certs; easily 200k+ in some cases. No shortage in finding bodies. Working conditions are brutal, long times away from home, and no shortage of Dear John letters, but there wasn't a shortage of labor. When there is good $$$ on offer, people will line up around the block. Esp. if all it takes is a 2-week course at the local community college.