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by acslater00
2321 days ago
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Correct, the author is describing the effect of a competitive, liquid talent market. The other dynamic he correctly identified was asymmetry in switching costs (cheap for me to quit my job and go work at Google, expensive for Google if I quit and leave some project in the lurch). But he didn't call it this, and it's not a risk premium per se. |
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I don't buy the part about asymmetry of switching costs. It's possible to argue that asymmetry exists in the opposite direction: each employee has one job, so switching jobs is time-consuming and risky; Google has thousands of engineers who have had the same training/experience on internal tools/standards, so it's easy to replace a single engineer when they leave a project.
The other point I made is analogous to Baumol's cost disease except that, instead of applying to different types of job, it applies to different types of employer.