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You could take away Europe's social safety net and wages would still be lower. There is no equivalent to Silicon Valley there which creates the competition that
by 88913527 3y ago
You could take away Europe's social safety net and wages would still be lower. There is no equivalent to Silicon Valley there which creates the competition that bids up salaries.
- ChuckNorris89 3y ago>You could take away Europe's social safety net and wages would still be lower. That's true, however the strong employee protection laws are definitely a factor that keep investors looking for safer returns like real estate rather than putting their money in starting a risky business in Europe. If you had 1 mm USD/EUR/GBP to start a tech business, would you rather put it in a country where employees have high salaries but almost no rights or benefits by law, or in a country with lower wages but where you have the added risk to your business by all employees have stronger rights and benefits so your star coder could always spontaneously take his parental leave or his month long vacation break whenever you need him the most because "that's his legal right". It's sad but true. Employee protection rights are good, but they do discourage investments. The fact that US has almost no employee rights does encourage investing in labour there.