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There are certainly examples of companies to which work is outsourced paying new workers much less than those they inherit.
What the nail-salon owners have done to defy Baumol's cost disease, then, is to pay their workers much less than a market wage.
Companies that employ them can bid much lower on projects than he can because they pay workers much less, Mr. Leon said.
The nail-salon industry in New York, though, is defying this rule by paying workers much less than a market wage.
It remains true that given their low productivity, countries like Bangladesh can't be competitive with advanced countries unless they pay their workers much less, and provide much worse working conditions too.
"We'll be lucky if the unemployment rate is below double digits by the end of next year," said Jared Bernstein, who will be the chief economic adviser to Vice President-elect Joseph R. Biden Jr. "Even if the economy improves, the growth won't be enough to rehire laid-off workers, much less absorb those coming into the labor force".
Similar(52)
Few villagers had ever seen a health care worker, much less a doctor; almost no one was vaccinated against any disease; women delivered babies at home, with only a relative present.
"It is extraordinarily easy to pay an H-1B worker much less than an American worker," Hira observed; the trick lies in how the job is defined.
"I couldn't seem to find a blue-collar worker, much less one that was not the typical white male or female".
"I couldn't seem to find a blue-collar worker, much less one that was not the typical white male or female". .
I supplied him with a study (pdf) that used Social Security Administration data to show that because high-income workers depend much less than middle-income workers on Social Security, they would have smaller percentage cuts in overall retirement income than middle-income workers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com