Let's say I'm a college graduate (with accompanying student loan debt) and you're a high school grad. We both get jobs at the same company and you're paid 40k while I'm paid 60k. If we both get raises to 70k, I am still stuck with my student loan debt while getting paid the same as someone who did not need to spend years in school or take on student debt.
Because of the reasons listed in my original post. If I had to sacrifice time and money to graduate from college to qualify for a job and an arbitrary raise provides the same compensation to someone who does not have a college degree, it devalues my degree. On top of that, besides the degree getting devalued, I still have the original student debt amount.
Except that happens all the time, you just don't know about it. This is what its all about - transparency and disclosure. If you keep the first guy in the dark (as 98% of corporations do), he doesn't feel "bad" enough to get out and you trim some cash on both.
