It's a highly simplistic theory that fails to take into account the irrationality of economic activity. Yet another economic theory trying to oversimplify psychology with numbers.

How many workers actually have the capability of choosing between vastly different fields? There are dozens of factors that lead to people choosing career paths in the short, medium, and long term. Evidence in support of this Baumol effect is at best a correlation and not really an explanation or causation.

Baumol Effect does not really explain much, in fact there are a lot of examples that directly contradict it. Check the section 3 of https://slatestarcodex.com/2017/02/09/considerations-on-cost....