>If employers offered significantly higher wages then plenty more supply would quickly appear to clear the market
This is really a housing supply question as Matt Yglesias makes clear here: http://www.slate.com/articles/business/moneybox/2012/05/face... and as others have written (see, for example, Ryan Avent's The Gated City). Housing costs in Silicon Valley are insane, which prices out lower skill workers and forces companies to pay more for highly skilled workers. Allowing to higher building heights and reduce setback requirements alone would do a lot to improve the jobs situation.
This is really a housing supply question as Matt Yglesias makes clear here: http://www.slate.com/articles/business/moneybox/2012/05/face... and as others have written (see, for example, Ryan Avent's The Gated City). Housing costs in Silicon Valley are insane, which prices out lower skill workers and forces companies to pay more for highly skilled workers. Allowing to higher building heights and reduce setback requirements alone would do a lot to improve the jobs situation.