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Originally Posted by Mr.Coffee
It’s interesting to me. How did oil and gas end up with high wages relative to other industries?
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There are a number of factors which contribute to that but high wages with little job security isn’t always a recipe for success.
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At the end of the day the premise that market forces play no role in wages is not correct. It’s true that it’s a fallacy that trickle down economics work but it’s also true that market forces based on required skills drive wages and that the available supply of human capital would be a driver of wages.
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Market forces do have an impact but if I had to guess I’d say the majority of immigrants aren’t getting jobs based on their skills and training. For the sake of argument let’s agree that stopping immigration could possibly have a short term benefit by reducing the overall supply of labour but since we also live in a time where automation is quickly reducing the need for human labour it would probably be a bandaid solution at best. IMO we need more policies that increase earnings today and maintain that going forward.