Re:Technology Change Not the Culprit in Wages Falling Behind...
by BurningFrog on Thursday February 22, 2018 @01:38AM
(#16435656)
You are getting near some fundamental concepts in economics, but still need some guidance.
For one thing, saying that here "are" 100 software jobs is not the right way to think about a labor market.
You're right that no worker can sustainably be paid more than their work is worth to the employer. That is an upper bound on their pay.
Similarly, no worker will accept less in pay than they can get elsewhere. That puts a lower bound on their pay.
And so on.
The science that deals with this is called "Microeconomics", or sometimes, and more descriptively "Price Theory".
There is an enormous amount written about it, and knowledge of it gives you a hugely useful tool to understand the world. I wish I had a great introductory book to recommend, but I don't :(
For one thing, saying that here "are" 100 software jobs is not the right way to think about a labor market.
You're right that no worker can sustainably be paid more than their work is worth to the employer. That is an upper bound on their pay.
Similarly, no worker will accept less in pay than they can get elsewhere. That puts a lower bound on their pay.
And so on.
The science that deals with this is called "Microeconomics", or sometimes, and more descriptively "Price Theory".
There is an enormous amount written about it, and knowledge of it gives you a hugely useful tool to understand the world. I wish I had a great introductory book to recommend, but I don't :(