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Yet the overall cost premium, based on the difference in absolute wages between the U.S. and China, is actually expanding, so labor arbitrage involving China and other low labor cost markets will likely persist.
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People are less concerned about absolute levels of wages or standards of living, compared with how they are doing relative to others.
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For de Waal, these experiments complement research showing that people are less concerned about absolute levels of wages or standards of living, compared with how they are doing relative to others.
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They are therefore low-wage jobs: we have absolute proof that they are low-wage jobs because people are currently being paid low wages to do them.
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