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PR Newswire
21-02-2013, 06:15 PM
An good article from Yahoo by Linda Lim, a professor of strategy at the Stephen M. Ross School of Business at the University of Michigan. No wonder Yahoo sg kanna sue by SPH.
How land and people fit in Singapore's Economy
"In Singapore’s case, this is because the addition of more and more people to an essentially fixed and extremely scarce complementary resource, land, inevitably raises other costs. These include rising residential housing and commercial rental costs, and congestion costs especially in transportation.
Also, both higher housing costs and lengthening commute times effectively lower the real wage of workers (e.g. because it now takes them 10 or 11 hours to earn an 8-hour daily wage).
In a closed labour market, the rising cost of living eventually translates into higher nominal wages. But in an open labour market like Singapore’s, wage increases held down by the increased supply of foreign labour discourages the substitution of capital, higher technology and sophisticated management processes, for labour."
How land and people fit in Singapore's Economy
"In Singapore’s case, this is because the addition of more and more people to an essentially fixed and extremely scarce complementary resource, land, inevitably raises other costs. These include rising residential housing and commercial rental costs, and congestion costs especially in transportation.
Also, both higher housing costs and lengthening commute times effectively lower the real wage of workers (e.g. because it now takes them 10 or 11 hours to earn an 8-hour daily wage).
In a closed labour market, the rising cost of living eventually translates into higher nominal wages. But in an open labour market like Singapore’s, wage increases held down by the increased supply of foreign labour discourages the substitution of capital, higher technology and sophisticated management processes, for labour."