Re:WSJ: H-1B Visas Keep Down U.S. Tech Wages, Study Shows
by Eridrus on Tuesday March 14, 2017 @11:33PM
(#13873619)
I think labour markets are some of the least efficient markets that exist. Without immigration it takes at least 4+ years for extra supply to become available based on increasing prices. And when you hire someone you really don't know what you're getting, particularly in software.
Constraining supply increases salaries precisely because it takes supply so long to incorporate information.
On top of that, supply and demand is a pretty leaky abstraction, I don't expect it to be very accurate in such a nonideal market.
Of course not every market is a large efficient market. If you're talking about a price-regulated market, by all means, discuss shortages. Another good situation where discussing a shortage would be appropriate is markets that have very or perfectly inelastic supply over a relevant time period. Say, a vaccine that costs $1 but that takes 6 months to produce due to the biology involved, combined with a major epidemic in the relevant disease. It's fair to call that a shortage.