labor-market 4

Outsource your own job. A programmer outsourced his job to an Indian programmer. Salary arbitrage: $67,000 - $12,000 = $55,000. He’s planning to get another job and do this again. (It’s probably not true, though)

Does education really pay? An interesting article on Forbes arguing that education does not cause higher salaries, but is merely correlated with it. The logic sequence is broadly: Labour markets want smart people. Smart people tend to want education. Hence labour markets appear to want educated people.

While in the US services sector employment is falling, high tech employment, which is about 8% of the services sector, continues to grow. Meaning technology is still growing, despite the recession. Strange!

I’ve ordered a copy of the World Employment Report. Apparently, it says that India won’t sustain its software boom, and I want to know why.