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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?

#91

It all comes down to U.S. tech companies being much more successful, mainly because of the scale of the U.S. market. Any U.S. startup can immediately address a market of $21T (GDP) without any regulatory overhead or language considerations. This causes engineers to be insanely productive in terms of economic productivity. In comparison, Germany, the largest country in the EU, has a GDP of only $3.8T. It's much harder…

I think you are right, it is because of the US tech companies being much more successful.

BUT, I don't think it is because of the scale of the US market. As others have pointed out, Spotify from Sweden and many companies from Israel are also very successful.

I believe the real underlying reason is the strong VC ecosystem, which was established decades earlier in the US has led to the success of the tech companies there. In mainland Europe, VC is just getting started. My bet is, that we will see similar companies in 10-20 years from now.

Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?

#92

It all comes down to U.S. tech companies being much more successful, mainly because of the scale of the U.S. market. Any U.S. startup can immediately address a market of $21T (GDP) without any regulatory overhead or language considerations. This causes engineers to be insanely productive in terms of economic productivity. In comparison, Germany, the largest country in the EU, has a GDP of only $3.8T. It's much harder…

I think you are right, it is because of the US tech companies being much more successful. BUT, I don't think it is because of the scale of the US market. As others have pointed out, Spotify from Sweden and many companies from Israel are also very successful. I believe the real underlying reason is the strong VC ecosystem, which was established decades earlier in the US has led to the success of the tech companies the…

For what its worth, I have seen comments almost exactly like this 10 years ago on HN. It its very hard to predict when a real culture shift like that will happen. (I agree its an important part of the puzzle)

Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?

#93

Earlier quoted context omitted.

I think you are right, it is because of the US tech companies being much more successful. BUT, I don't think it is because of the scale of the US market. As others have pointed out, Spotify from Sweden and many companies from Israel are also very successful. I believe the real underlying reason is the strong VC ecosystem, which was established decades earlier in the US has led to the success of the tech companies the…

For what its worth, I have seen comments almost exactly like this 10 years ago on HN. It its very hard to predict when a real culture shift like that will happen. (I agree its an important part of the puzzle)

Fair enough. Predicting the future is impossible, I agree. But speculating is fine.

Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?

#94
post #85
post #25

Proximity to Eastern Europe, with some Eastern European nations now being EU members.

Not sure where the stats come from, but €57k is not even that much in EE. Currently making slightly over €100k in Eastern EU state. Magic word "contracting".

> Magic word "contracting".

Contracting will make you even more money in US too

Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?

#95
post #85
post #25

Proximity to Eastern Europe, with some Eastern European nations now being EU members.

Not sure where the stats come from, but €57k is not even that much in EE. Currently making slightly over €100k in Eastern EU state. Magic word "contracting".

Contracting or not, very few East European developers make six figure yearly amounts.

Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?

#96
post #79

Earlier quoted context omitted.

I’m 100% wfh in the US and it’s a double edged sword. I brought my daughter to the dentist yesterday at 2pm which would not have worked if I was at the office. But if I take a day and I have some calls I always get the “can you make those work on your day off?” guilt trips. I only get 15 days and probably 3-5 I get away with 0 work. Rest of them is 1-4 hours. Again it’s not terrible but it just makes it impossible to…

Are you actually living in the US or in EU and working for an EU company?

Live in US and work for US company.

Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?

#97
I would like to add that I know some engineers getting paid 75-90k € (some even with some unlikely stock options added) in Barcelona, Spain.

These are individual contributors with 10 years of experience.

These same engineers were getting paid 50k 3 years ago, but the current job market (and I guess, competition from remote work) increased wages that much.

Adjusting for cost of living, I would say that very close to SF.

Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?

#98
post #34

It all comes down to U.S. tech companies being much more successful, mainly because of the scale of the U.S. market. Any U.S. startup can immediately address a market of $21T (GDP) without any regulatory overhead or language considerations. This causes engineers to be insanely productive in terms of economic productivity. In comparison, Germany, the largest country in the EU, has a GDP of only $3.8T. It's much harder…

They could compete with each other more aggressively for EU talent, essentially extending the US market for s/w engineers to the EU, but the problem is a huge swathe of the best EU s/w engineers already move to the US chasing those x3 wages. We're somewhat better off here in the UK, we have a well developed s/w industry in games, defence, embedded systems and finance. The difference is maybe only 2x instead of 3x. On…

> if you're a top flight talent in say Ireland or Scotland what are you going to do? There are few local opportunities, and no good reason to go to London as against SF or Seattle.

Actually, London is a bunch easier in that case, as you can freely move there and not need visa sponsorship (specifically talking about Ireland here).

London is far too expensive for the tech salaries though, if you're not working in finance.

Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?

#99
post #16

Only way to make comparable money in Europe is by contracting. For some reason full-time employees are massively underpaid compared to US and don't tell me about living cost comparison. Life in London for example is just as expensive if not more than San Francisco/New York. We pay for our national health insurance too and probably comparable to what Americans pay for their private. People can barely afford an average…

> We pay for our national health insurance too and probably comparable to what Americans pay for their private.

That's not saying much since the NHS covers far more than what private insurance does in the US. Furthermore, in the US we have to deal with the absurdities of deductibles, co-insurance and "out of pocket" maxes (private insurance in the US does not kick in 100% until all of these are met). So on top of high monthly premiums, you still wind up with large bills and even larger if you go to a facility that is "out of network". Also dental/eye care are most often separate insurance policies with different companies. I'd take the NHS any day over the asinine system we have here in the US.

Re: Ask HN: A US programmer makes 3 times that of a EU programmer. Why?

#100

I'm a software engineer that recently moved from California to Dublin, so here's my take on answering the questions (and not the dick measuring contest of US-vs-EU): * Making $1 in the US != making $1 in the EU: There are all sorts of things built into the society here that simply don't exist in the US (or Cali anyway). For example, in Cali I was absolutely required to own a car, which means paying registration and i…

> childcare here in Dublin is something on the order of $250/week

This is crazy low, it's more like 300+ euro per week, which is a lot of money.

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