Baumol effect
(en)
(aka Baumol's cost disease) rise of salaries in jobs that have experienced no increase of labor productivity, in response to rising salaries in other jobs that have experienced the labor productivity growth
The problem that Baumol and Bowen identified was subtler than that: They named a condition called "cost disease." While classical music hasn't grown any more productive, the cost of producing it keeps increasing.
notable
7 years, 1 month ago