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Colin's avatar

Could this be an example of Baumol Cost Disease in action? If another sector, such as automotive, was experiencing productivity improvements, then the value of one hour of work in the automotive sector is higher, and so automotive wages could rise. Many job-seekers who would have gone into construction can earn more in the automotive sector. So in order to attract new workers the wages in the construction sector would have to rise as well, even if there had not yet been enough compensating productivity improvement in the construction sector.

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Zach Gentry's avatar

This is baffling. I think about the cost savings measures deployed in each of these trades. Those are not showing themselves anywhere.

For example, cordless nail guns and saws should result in much faster carpentry. And my experience with low-rise would lead me to conclude that this is the case. This should surely be reflected in the delivery costs. But it's not.

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