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Baumol Effect

Creator
Creator
Seonglae ChoSeonglae Cho
Created
Created
2025 Nov 12 0:25
Editor
Edited
Edited
2026 Feb 25 17:36
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As technology advances, services in professions that don't benefit from technology become more expensive. Jobs with low productivity growth (e.g., hairdressing, cooking, caregiving, arts) are not automated, but as other industries grow and overall wage levels rise, wages in these fields also increase.
The Jevons effect creates wealth, while the Baumol effect distributes that wealth throughout society.
 
 
 
 
 
 
 

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