4 ms·
Agreed. Also what both are missing is the cost to company difference (the 'wedge' in economics-speak). In the US that's ~15% on top of the salaries you two me
by cm277 6y ago
Agreed. Also what both are missing is the cost to company difference (the 'wedge' in economics-speak). In the US that's ~15% on top of the salaries you two mention above, even with health insurance added. For FAANG, with extra perks, etc, it could go to 20%. In the EU the wedge starts at 25% and goes up from there (to 40%+ in some countries for high incomes).
So, the difference between the two countries is about ~20-25% on a cost-to-company basis (which is what employers care about). That can be easily justified by a better talent pool (attracted by the higher salaries), economies of scale in training, managing, etc. Not a massive deal. Also, helps a lot when you are a FAANG, literally the most profitable companies in the history of humanity (i.e. under-regulated as hell).
Source: software employer (not FAANG) in both the US/EU.