A quick google to compare salaries of a US software engineer with that of a NL (Netherlands) software engineer shows that the top segment on average makes €145,000 (US) versus €57,000 (NL). How can this big difference be explained?
Ask HN: A US programmer makes 3 times that of a EU programmer. Why?
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Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?
#2Market economy. In the US there is a perception of shortage and so wages are artificially increased (as compared to other industries of equivalent skills/experience/challenge) to account for that perception.
The reason that perception exists is a misalignment between how developers are produced, the skills required by industry, and the things employers are willing to do to compensate for that supposed gap.
Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?
#3The US pioneered programming and has had a lot of success because of it and therefore they value it. The rest of the world, not so much.
Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?
#4It's not so simple. The places you can earn these wages in the US have incredible high cost of living usually. Something that is way less extreme over here.
Then health care, social security and pension costs. That could easily half your US income to get to the same standards. Also taxes, NL or DE has very high taxes comparingly however NL also has a amazing public infrastructure you get for that. You won't need a car for example.
Best of both worlds is Switzerland. Wages are more or less in between your examples, taxes are low, standard is super high.
Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?
#5There are a lot of hidden perks and benefits that us Europeans never see (even though we pay for them) such as healthcare, childcare, higher education and elderly care. Just as an example a former colleague moved to the US and his spouse stopped working because the cost of daycare was basically one full salary.
Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?
#6we are just worth more
Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?
#7The software engineers at the top segment in the Netherland are not working full-time jobs, but are instead pulling €800 per day (or more) via long-term contracts. Assuming you're working 48 weeks per year, this amounts to €192k per year.
Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?
#8A lot of the Europeans in this thread will jump on things like health care or other social benefits without realizing that high paid workers in the US are well taken care of in this regard.
The truth is the pay is higher in the US and is not particularly close. It's funny trying to see Europeans argue places like London, Zurich, or Amsterdam are "low cost" compared to US cities to try justify the difference
Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?
#9One explanation is there is simply more money sloshing around in the US tech sector. Creating a startup and raising a few million dollars in VC is just a lot easier in the US than in NL, so a lot more companies are simply able to pay those salaries.
At the other end of the scale, the largest US companies are simply more efficient than NL companies. Just compare the revenue pr employee for the 10 largest NL companies to the revenue pr employee for the 10 largest US companies and you'll see a stark difference. More revenue pr employee means more money to pay salaries (very simply).
Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?
#10A lot of the Europeans in this thread will jump on things like health care or other social benefits without realizing that high paid workers in the US are well taken care of in this regard. The truth is the pay is higher in the US and is not particularly close. It's funny trying to see Europeans argue places like London, Zurich, or Amsterdam are "low cost" compared to US cities to try justify the difference
I see your reasoning pop up as often as the European viewpoint and each time I have the same reflection: what about your loved ones? AFAIK your significant other + children can be covered by your insurance, but what if one of your parents or siblings get in financial straits due to some medical event?