Is wage stagnation a paradox?
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Dwarkesh Patel addresses the apparent paradox of wage stagnation and rising labor costs, particularly for skilled labor. He explains that while wage stagnation is often reported, the cost of skilled labor has actually increased, especially in sectors like healthcare and education. This is because skilled workers, such as PhDs, have more lucrative opportunities in places like Silicon Valley, thereby raising their opportunity cost and justifying higher wages in sectors that traditionally employ skilled labor 1.
Rising Cost of Skilled Labor
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