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This article effectively is saying that if the demand for developers falls that salaries would fall. Which is obvious to anyone who has taken econ 101, but I h
by usaar333 7y ago
This article effectively is saying that if the demand for developers falls that salaries would fall. Which is obvious to anyone who has taken econ 101, but I have no idea how this is anymore of a "risk premium" than anyone else who works for a living.
> and the cut you’re taking from not working at AppAmaGooFaceSoft.
This pre-supposes that:
A) Apple, Amazon, Facebook, Microsoft are the highest paying companies (not only not true for liquid cash, even less true if you factor in start-up equity expectation)
B) Salaries aren't being set by all the other companies as well. [Generalists, at least in the Bay Area, are in a competitive employment market, not an oligopoly]
- amitutk 7y agoThe article is not saying that - if IBM hires 100,000 developers but AppAmaGooBookSoft have a hiring freeze, then then you get a much smaller risk premium. The point being that AppAmaGooBookSoft pay insane salaries so other companies need to pay their employees somewhat well to minimize risk losing their (best) employees to AppAmaGooBookSoft.
- usaar333 7y agoCan you define what "risk premium" means here? I can't tell if the argument here is that the market isn't competitive or something else. It's not like FAANG pays high salaries because they are generous.
- deleted 7y ago[deleted]