But the market for lemons does not describe the labor market. Good companies grow and need more employees. Good employees do not get market-competitive salary adjustments and thus look for different jobs. It's the complete opposite!
There are exceptions, without a doubt.
EDIT - and let me also say that if the market for lemons accurately describes the labor market, why is it that tech is the only industry with such broken hiring practices?
Yes. But it is incredibly hard to get into a good company.
"and let me also say that if the market for lemons accurately describes the labor market, why is it that tech is the only industry with such broken hiring practices? "
In other "tech" industries it is the same. How do you get into a blue chip company?
1. contacts of your parents
2. contacts of your professor at University
3. you work for a start-up that they buy
In my experience this is true for 9/10 people I know.
I did my PhD in NYC and I once was asked in an interview for a med-sized medical company what the street name in Brooklyn is with all the hipsters. Think deeply what could be the reason for such a question.
Did you answer "all of them"?
A good employer assumes that only bad employees are left in the market. As do good employees think that only bad employers are looking via job ads.
Hence more and more god jobs are filled via referrals from fiends etc. I basically think the same about job ads. Why bother applying?