Re:Unemployment in the U.S. Is Falling, So Why Isn’t Pay Ris...
by snowwrestler on Friday May 19, 2017 @01:14PM
(#14377618)
The ability to fill an opening by increasing salary does not disprove a skilled labor shortage.
Imagine a model economy of 10 companies with openings, and one person with the skills to fill them. All 10 companies can fill their openings by sequentially raising their salary offer to that person.
If you don't account for the openings that are created along the way (as the one person sequentially jumps for the higher salary), you'll have a mistaken impression there is no skilled labor shortage. After all, each company hired someone.
Imagine a model economy of 10 companies with openings, and one person with the skills to fill them. All 10 companies can fill their openings by sequentially raising their salary offer to that person.
If you don't account for the openings that are created along the way (as the one person sequentially jumps for the higher salary), you'll have a mistaken impression there is no skilled labor shortage. After all, each company hired someone.