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Specifically, the skill premium may widen if the relative supply of skilled labor falls.
Prejudice needlessly deprives a business of skilled labor, he points out.
But many worry about a lack of skilled labor, a crumbling infrastructure and surprisingly high prices.
This investment boom is already straining the supply of skilled labor.
The Bulgarian ecomomy is undercapitalized so there is an excess of skilled labor.
"India already has the second-largest reservoir of skilled labor in the world," Mr. Nilekani notes.
"In the 1980s and 1990s in particular, there was an abundance of skilled labor and a relative scarcity of capital".
Construction costs are rising, in large part from a shortage of skilled labor that is causing construction delays.
We should reform immigration along the lines currently suggested and increase the supply of skilled labor in the world.
Similarly, entrepreneurs typically stress the importance of skilled labor in determining where they situate and build their companies.
Australia's mining boom has enticed thousands of young workers, leaving the country's tourism industry short of skilled labor.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com