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Well salaries also ignore health insurance, unemployment benefits, pensions etc. which artificially inflate the difference between the US and Europe. Also other
by cycomanic 5y ago
Well salaries also ignore health insurance, unemployment benefits, pensions etc. which artificially inflate the difference between the US and Europe. Also other things like childcare and schooling. I mean just the difference between what one has to pay for childcare per year can amount to several $10k and then there is college. So these calculations are definitely not so straight forward.
- TaylorPhebillo 5y agoWhile that's true (and on the other side, the analysis also doesn't consider tax rates), I think those are fairly minor compared to the effect of equity on compensation. Looking at Dropbox as an example of a U.S. tech company that I picked at random-ish, I see compensation range from 40-165% higher than salary, which means a huge difference. https://www.levels.fyi/company/Dropbox/salaries/Software-Engineer/ https://www.levels.fyi/company/Dropbox/salaries/Software-Eng...
- refurb 5y agoAll of that is true, but at the scale we’re talking about those are rounding errors. Sure, housing in the Bay Area costs $36k more per year and yeah, you might shell out $10k in a year for medical if you have a baby and yeah, your kid might cost $20k per year in private school, but when you’re taking home $200k more per year, an extra $50k doesn’t move the needle much.