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by rtpg 4267 days ago
Likewise, you cannot simply hand wave away prerequisites if they're big enough. The friction here is enormous (the cost to move to another city can be extremely large).
2 comments

The argument was that people should move to a cheaper city if being a Facebook bus driver can't support them.

But that doesn't imply that Facebook is forcing people to move cities. Facebook isn't altering the labor market by employing drivers at market rates.

I hope you'll agree that the frictions from moving arise from changes in cost of living (or in the labor market, which doesn't appear to be changing). If the change in the housing market is gradual enough, the frictions need not be very significant, since they are amortized over a longer period of time.

"the cost to move to another city can be extremely large"

In what sense? Monetarily, i don't believe you. Emotionally, sure.