Why is this? There are possible causes having to do with tax rates and culture, but has anyone really looked into it? How big a contributor is this (rather than, say, immigrants as percent of total population, or university quality) to the fact that the US has Google and Apple and Facebook and Twitter, and the rest of the world has… JustEat and Spotify?
Ask HN: Why do companies outside the US pay so much less?
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Re: Ask HN: Why do companies outside the US pay so much less?
#2The US has a higher cost of living than most other countries. Those who are comparable pay somewhat more competitively with US jobs. This becomes really clear with remote work. Outside of the major tech hubs, the pay for IT drops off to comparable levels with European companies.
We have a culture that doesn't require a business degree to open a business that investors would take seriously. As a result, companies pay highly skilled IT employees more to keep them happy enough to not start up their own business.
There is more direct competition between deep pocketed firms for talent. High demand always skews the price, and it is faaaar easier for the US firms to hire US based workers.
Traditionally, the US had been the only place to get any form of quality IT. The training programs and college degrees are more established.
We also see that many of our outsourced maintenance IT jobs may be done cheaper, but they are often worth far less than what they charge. That negative impression reinforces the stereotype of US based IT professionals are more competent.
Re: Ask HN: Why do companies outside the US pay so much less?
#3Re: Ask HN: Why do companies outside the US pay so much less?
#4The cost of life is lower. Healthcare is included in taxes.
Or it assumed to be on top of your salary?
Re: Ask HN: Why do companies outside the US pay so much less?
#5I think there is also not as much of a general tech talent shortage in Europe, so it's not one of the most in-demand jobs outside of specialized areas (if you're a top deep-learning expert right now, yes, but not for general programming / SE jobs). Many European countries traditionally have very strong STEM education, in a number of cases actually overproducing highly skilled graduates in the field relative to the local industry's needs (which is why you see a lot of Spanish, Romanian, Greek, Italian, etc. STEM graduates working in other countries). Not quite as badly oversupplied in the "T" part of STEM as in the "M" part, but still, not a shortage.
edit: Oh, another factor, for right now, that I should've mentioned is that the U.S. dollar is much stronger against the Euro and UK pound than it has been historically (even compared to a year or two ago), while salaries don't respond that quickly to currency movements. There are still significant differences if you use circa 2015 exchange rates, but smaller.
Re: Ask HN: Why do companies outside the US pay so much less?
#6The cost of life is lower. Healthcare is included in taxes.
Is it removed from your salary in the us? Or it assumed to be on top of your salary?
Re: Ask HN: Why do companies outside the US pay so much less?
#7The cost of life is lower. Healthcare is included in taxes.
Re: Ask HN: Why do companies outside the US pay so much less?
#8Re: Ask HN: Why do companies outside the US pay so much less?
#9The cost of life is lower. Healthcare is included in taxes.
The cost of life argument makes no sense. By this logic we should be seeing janitors, or translators, or piano teachers in SV being paid much, much more then they are. If there was a coal mine near San Francisco I suppose the miners would be paid 100k/year as well?
Yes.
Re: Ask HN: Why do companies outside the US pay so much less?
#10There are a few reasons I have seen. The US has a higher cost of living than most other countries. Those who are comparable pay somewhat more competitively with US jobs. This becomes really clear with remote work. Outside of the major tech hubs, the pay for IT drops off to comparable levels with European companies. We have a culture that doesn't require a business degree to open a business that investors would take s…
Not sure that I agree with that! Compare to the UK, I don't think this is at all true. Compared to say, India, then that was definitely true.