Job Gentrification
28th July 2013
What happens if Walmart starts offering to pay cashiers and shelf stockers $22/hr? As it raises wages, the kind of people who compete for Walmart jobs changes. As wages go up, workers with greater skill, human capital, and experience start to compete for these jobs, and, being better workers, they will beat out the kind of workers who are currently getting Walmart jobs. Call this phenomenon job gentrification. If Walmart increases its wage significantly, this will be very good for the people who end up working at Walmart. But that doesn’t mean it will be good for the kind of people who currently are getting the low-paying jobs at Walmart.
Eh, who cares about them? Obviously not the people on the D.C. city council.