What does economics tell us about replaceability?

Abstract

This work discusses the concept of ‘replaceability,’ which is important in career choice discussions, particularly among Efficient Altruists. It delves into the implications of joining or not joining certain labor markets, offering perspectives from classical economics and labor supply and demand models. The author argues that entering a specific industry can affect the number of available jobs in that sector. The extent of this impact, however, can significantly vary across different industries and job types. Several factors determine this variation, including the elasticity of labor supply and demand, the nature of the industry, and the regulations in place. The reasonings are applied to various industries, highlighting how different sectors, like medicine, charities, and highly specialized areas, might respond or be affected by the entry or exit of potential employees. The document concludes by regarding that its analysis only covers one aspect of job ‘replaceability’ and acknowledging a need for further analysis. – AI-generated abstract.