Comment by carlosjobim

I think you fail to account for just how little a salary needs to be increased for it to be interesting to switch jobs for the people who are making the lowest wages. In Europe, people compare wages with single digit differences per hour when deciding for switches in jobs and careers.

And low paid workers in the service sector aren't low skilled and costly to get going. They're intelligent and honest, and would be fine workers in manufacturing if given the opportunity. They're working in the service sector because those jobs couldn't be off-shored.