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A comment on Internal Amazon documents shed light on how company pressures out office workers. Parent comment

Re:Internal Amazon documents shed light on how company press... by HWR_14 on Monday June 21, 2021 @04:39PM (#27584147)
> Generally, compensation is pretty closely tied to revenue per employee. Not always, but it’s a pretty good rule of thumb.

I don't know of any theoretical reason that would be true nor see any evidence of that in practice.

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Re:Internal Amazon documents shed light on how company press... by dcolkitt on Monday June 21, 2021 @04:56PM (#27584352)
In microeconomics, it’s a pretty foundational tenet that wages normalize to marginal worker productivity.
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Re:Internal Amazon documents shed light on how company press... by HWR_14 on Monday June 21, 2021 @05:11PM (#27584554)
I don't remember that from any of my microeconomic courses. I mean, maybe you mean society wide (aka macro), but that's only as average worker productivity rises, and has nothing to do with particularly efficient single firms.
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Re:Internal Amazon documents shed light on how company press... by brutus1213 on Monday June 21, 2021 @08:46PM (#27586610)
Simple thought experiment. Firms will continue to hire until wage = marginal productivity .. otherwise, you leave money on the table. Usual BS assumptions on perfect information/competition, cetrus paribus, and all that stuff.
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Re:Internal Amazon documents shed light on how company press... by HWR_14 on Monday June 21, 2021 @09:54PM (#27587117)
In your simple thought experiment, why are wages going up for that one firm? You're hiring more people, not raising the wages of the existing people. And I'm not sure why you think unit economics apply to software with it's almost 100% fixed costs.
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