# Baumol's cost disease ![](500px-US_CPI.jpg) Salaries have risen in jobs that haven’t experienced increasing productivity (like most service job) in response to rising wages in areas that *are* experiencing productivity growth because of the need to compete for employees. <!-- #mental-model --> [Web URL for this note](http://notes.benjaminreinhardt.com/Baumol's+cost+disease) [Comment on this note](http://via.hypothes.is/http://notes.benjaminreinhardt.com/Baumol's+cost+disease) <!-- {BearID:47D18B11-48BA-4684-83AA-7BFE9C640D80-484-0002DB10B2E7CD64} -->