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They are slightly different, though I agree that most of the time it's a matter of greedy or shortsighted executives being cheap or expecting workers to bear the cost of training.

How they're different: you may well have a situation where the short term supply of workers is highly inelastic. In that situation, paying more won't help any shortage. And some jobs that you would think are elastic in the long term aren't as much as you might think: the majority of people may simply be unable to perform the job, or uncertainties about the job's existence in four years might mean the expected return of training is very low or negative.

If people are not sanguine about the existence of trucking jobs 10 years from now, it's no surprise that the actual supply of labor is very low and not looking to expand soon. If you're an employer, you're probably best off using your monopsonist position to drive down wages of the current supply instead of paying handsome sums to coax people into taking big risks in preparing and dedicating themselves to your jobs. Especially if you're an executive rewarded on the timescales of a year or two, and not on timescales of a decade.



For any individual trucking firm in a liquid market served by several such firms, the driver market is in fact highly elastic. If this Swift Transportation company which is featured in the article wanted to avoid a 20% decline in their share price, they merely had to walk into the break room at the competing trucking company and offer $10,000 spot bonuses to switch companies. Boom. Elastic.

Anyway, Swift's annual report says that driver wages as a fraction of revenue have fallen in each of the last two years, so it's their own fault if they came up short on drivers.


According to the article, the shortage is industry wide. The result of what you suggest would be a bidding war for the existing truckers, until the point the bidding has devoured all economic profit. We don't see that happening, clearly.

My hypothesis of implicit or explicit collusion among the dwindling number of trucking firms to drive down wages instead of drawing on supposedly elastic supply manages to explain that, on the other hand. The only other possibility would be an industry wide miscalculation that just happens to look the same as widespread collusion.




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