While I agree that massively raising salaries wouldn't necessarily cause a corresponding increase in the overall labor pool of programmers, it likely would incr

While I agree that massively raising salaries wouldn't necessarily cause a corresponding increase in the overall labor pool of programmers, it likely would increase a number employers care more about. Specifically, such a move would likely deepen the pool of programmers who want a W-2 job with a company that is the ultimate target of their work (as opposed to services firms). I would guess a lot of contractors would sign up for steady work at salaries in the range you mentioned. This applies across the experience spectrum, but more especially to more experienced people, who are less valued by current employment structures. A lot of contractors basically act like employees now, and are only contractors for exogenous labor market reasons. For example, independent contractors can easily make more than the prevailing total W-2 comp for their level of experience. Closer to entry level, large system integrators (think: Accenture, IBM, etc.) pay marginally more with better benefits than most entry level jobs at F500 companies, where programmers usually do not make $150k to start. A $150k entry level salary would draw this talent directly into the F500 and away from the middlemen. (This is all to the extent that there are even entry level programming jobs at those firms anymore, since so many have been shifted to consulting firms). Overall, it could end up being cheaper in both short and long terms for many of those roles to be filled by W-2 employees than by system integrators. I'd bet good money that these salary levels would make it relatively easy to hire formerly independent consultants and/or out of the big system integrators. There is also a decent number of mid-career software people who have switched into other fields (law, project management) for potential financial upside. Programming can be a demanding field, and by mid-career for many people the compensation doesn't balance against the relatively low social status, being on call, etc. Many of these people might prefer to be programmers at a F500 making $400k with benefits, but in the main that job doesn't exist. And that's before we look at people running small businesses that are semi-successful. The bar for continuing to run those goes up substantially if the alternative is make $40k/month at a +/-40 hour/week job. To answer your question: yes, a senior development comp of $500k would increase the number of senior development employees.