True or False . When skilled jobs are going to developing countries, service jobs that require fewer skills receive higher compnesation in the local economy

RickJ

If you're looking for a textbook answer, I can't help. If you're looking for opinions from business people, I have one:

Generally, false: Unless a huge majority of the skilled jobs are gone then the number of local folk in service jobs - along with the number of potential service job people, changes very little....so no need for the service job employers to raise compensation.

fredg

Hi,
I agree with your previous answer.
The rate of pay for less skilled jobs usually don't change. Why should they? It is generally accepted that this is true.
With incoming new jobs, with higher skills levels, employers will pay more for those job positions, but again, it usually doesn't affect the "lower paying" jobs. It could possibly create more of the "less skilled" jobs available, but the pay rates normally don't change much.

valinors_sorrow

Another non-textbook answer: FALSE

If anything I would guess that the laws of supply/demand would eventually cause the wages to decline since its adding more competition to the work arena, skilled or not. This is based on my assumption that skilled people will work unskilled jobs, if necessary. All I have to go on with that is... I did it and the guy in the film American Beauty did it!

But perhaps that is too simple.

Are there other factors I am not including in my thinking?