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The "issue" in question is the marginal productivity of imported ICT labor. Your generalization about nominal wage effects holds only where an economy faces con
by schlumpf 12y ago
The "issue" in question is the marginal productivity of imported ICT labor. Your generalization about nominal wage effects holds only where an economy faces constant (or diminishing) returns to scale from immigration [1]. This essay argues exactly the opposite, that US government policy should compete to attract people who will increase economic returns to scale.
> ...it's easy to imagine cases where a great programmer might invent things worth 100x or even 1000x an average programmer's salary.
Moreover, there is evidence that even IT workers in identical, commoditized roles are sufficiently more productive in the US than than in India so as to justify an extra $75k per capita in client billings for they US-based workers [2]. PG's essay is not sufficiently described by a rudimentary labor supply curve as you claim.
[1] http://www2.hawaii.edu/~noy/362texts/immigration.pdf http://www2.hawaii.edu/~noy/362texts/immigration.pdf p.156, particularly footnote 8
[2] https://www.aeaweb.org/aea/2013conference/program/retrieve.php?pdfid=459 https://www.aeaweb.org/aea/2013conference/program/retrieve.p...