3 ms·
FWIW, I think you have this exactly backward. It’s higher incomes at the top that drive higher incomes at the bottom. Low skill workers in developed countries m
by toasterlovin 3y ago
FWIW, I think you have this exactly backward. It’s higher incomes at the top that drive higher incomes at the bottom. Low skill workers in developed countries make more because they are part of what is essentially a labor cartel: there are certain jobs which can only be performed by, e.g., an English speaking person who understands the American cultural context and who is physically located in America. And restricted immigration and language barriers prevent competition from new entrants. So as more people are pulled into high skill, high pay work, incomes for even low skilled people go up, because their competition decreases and overall wealth in the society, ie wealth available to pay for their time, increases.