4 ms·
The "supply and demand will equilibriate" position only works in an entirely elastic scenario. It rarely works out that cleanly. London is a good example; wages
by ealexhudson 9y ago
The "supply and demand will equilibriate" position only works in an entirely elastic scenario. It rarely works out that cleanly. London is a good example; wages are already extremely high in tech - to the point that many companies cannot hire. But supply is still not there, for a bunch of different reasons - e.g. people unwilling to continue/make a new life in the UK due to Brexit. Wages would have to rise _even further_ to offset that, way beyond the point it makes economic sense for a company to do that.
You can have very high prices and still insufficient supply. The prices are supposed to attract supply; but e.g. when a country is not seen as being welcoming to immigrants (or, in fact, has legal restrictions in place) the only flex is in people training/retraining, which is a many-years response to an immediate problem.
- chopin 9y agoIf you are making north of 100k, a two hours commute (each way) is not attractive. I would deem this a more limiting factor and is one reason I'd never would move to a company in Munich (I am living in Germany).
- furqs 9y agoThere's no way to have a 2 hour commute in Munich unless you live in Salzburg, Austria. The problem with Munich is the lack of good tech companies here.
- wink 9y agoIf you think there are no good tech companies in Munich, what's then left in Germany? :P I do agree the more hip ones are in Berlin, and maybe Hamburg - but I'd still say your statement is unfair, if not taken in the context of lack of "good tech companies" in Germany overall.
- chopin 9y agoMy personal limit is more 45 min. Within that radius I'd have to find a home which is comparable to my current one. I don't think any employer would pay that much more to afford it.
- roel_v 9y agoWhat are those 'extremely high salaries in tech' you speak of, outside of a select few Canary Wharf positions? UK salaries in tech are abysmal from what I see - and just last year I heard a UK 'entrepreneur' brag about how cheap engineers are in the UK at a software business conference. Also keeping in mind CoL - who wants to take a London job when it means 2 hour commutes one way in order to have some disposable income left?