Earlier quoted context omitted.
Ah yes, the last 30 odd years of increasing immigration has exerted tremendous downward pressure on US tech salaries. And countries in Europe that have not seen as much Tech immigration have seen huge boosts in Tech salaries. Comparable Europeans earn almost 1/3 - 1/2 what their American counterparts do today!
I’d be curious to hear opinions on why this large compensation discrepancy exists. AFAIK, my company has never considered outsourcing to remote Euro workers. Is there a perceived difference in engineer quality? Time difference?
- The hiring pool is much smaller than in the US, one reason is probably demographics and lack of skilled immigration. This makes it less attractive to hire/grow there.
- Labor regulation is much more strict. It's legally hard and expensive to lay off workers in Germany, for example.
- Taxes are much higher than in the US, so even if employers spend a lot of money on payroll, much less of it will end up in employees checking accounts.
- Demand is much lower. Tech industry in Europe is definitely there, but not booming to the same degree as in the US.