4 ms·

Think about how people won't buy turnips (or consumer goods in general) if the price is higher than they expect -- even if that's the break-even price. I think

Think about how people won't buy turnips (or consumer goods in general) if the price is higher than they expect -- even if that's the break-even price. I think something similar's happening with employers: they won't pay more than $80-$100,000 for a programmer, the market-clearing price for programmers is somewhere around $130,000, and thus you get a STEM shortage. And this applies pretty much everywhere; it's astonishing how few employers are willing to admit that they can't fill positions, they aren't offering enough money.

internaut 10y ago
That's what I think as well. Why are they motivated to do this though CT? I feel like I'm missing a piece of the puzzle. Labour costs are tiny fractions of these company's profits, and code stays 'fresh' for decades. You can easily get leaps in productivity that save a huge quantity of money for the company by just thinking a little harder. And it should be the case that smaller teams are better teams. Why do programmers even make wages similar to the middle class? Their work isn't remotely comparable to lawyers or dentists. Surely million dollar salaries should be the norm. The practice of acquhires suggest a starting salary ought to be around 1.5 million dollars. Even if it was one tenth of that...
marchenko 10y ago
good point. Price stickiness can apply to wages as well - it's often used to explain why it's supposedly difficult to decrease wages to keep positions filled during a recession, but I suspect in the current market the opposite is more often true: companies have a certain price point for labor in mind and are unwilling revise their payscale upward. It's a sinister version of your grandmother complaining about the price of milk, since large companies have a lot of leverage to distort the labor market.

4 ms·

Think about how people won't buy turnips (or consumer goods in general) if the price is higher than they expect -- even if that's the break-even price. I think

by clock_tower 10y ago

internaut 10y ago
That's what I think as well. Why are they motivated to do this though CT? I feel like I'm missing a piece of the puzzle. Labour costs are tiny fractions of these company's profits, and code stays 'fresh' for decades. You can easily get leaps in productivity that save a huge quantity of money for the company by just thinking a little harder. And it should be the case that smaller teams are better teams. Why do programmers even make wages similar to the middle class? Their work isn't remotely comparable to lawyers or dentists. Surely million dollar salaries should be the norm. The practice of acquhires suggest a starting salary ought to be around 1.5 million dollars. Even if it was one tenth of that...
marchenko 10y ago
good point. Price stickiness can apply to wages as well - it's often used to explain why it's supposedly difficult to decrease wages to keep positions filled during a recession, but I suspect in the current market the opposite is more often true: companies have a certain price point for labor in mind and are unwilling revise their payscale upward. It's a sinister version of your grandmother complaining about the price of milk, since large companies have a lot of leverage to distort the labor market.