[rahimnathwani]

Yes, there's a competitive, liquid talent market.

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.