3 ms·

My theory is that people are shopping around for better employers and better cultural fit, and that it's not just a question of taking the highest offer any mor

by d4nt 11y ago

My theory is that people are shopping around for better employers and better cultural fit, and that it's not just a question of taking the highest offer any more. That would explain why wages are not rising.

PythonicAlpha 11y ago
If the problem would be just employees "shopping around" that would not explain, why wages are not rising. If they would shop around, wages would also rise, even when they are only marginal interested in wages ... (show me 3 employees that are not interested in wages)
- hodwik 11y ago
  Tech wages are very inflated as is, expecting them to rise is pretty silly. When I was looking for my current job, I forgot to even ask about wages. So maybe what they gave me in pay is "flat" from five years ago, but it's still twice what any of my friends my age are making, while they have degrees and I do not.
  - PythonicAlpha 11y ago
    I was only reacting on the argument was made by the OP, that is not logical in my opinion. I do not know about tech wages in the US. In Germany, the tech wages are not inflated, at least not in my opinion. The normal tech wages have risen maybe 3-5% per year the last few years in Germany (I don't call this inflated) and the years before it was even less. In the same time, the wages for top-managers have risen maybe 10-15% per year and are since decades incredible high above the wages of "tech wages" (the difference is climbing and climbing). I call that inflated. Your statement of course is more logical than that of the OP.
    - hodwik 11y ago
      Developer wages in the US average around €62k, about 20 higher than in Germany, while the US has roughly 30% lower cost of living. Also, in Germany you're at a 40% income tax rate at €43k, while in the US at €62k you're only taxed at 25%. Sure, that 40% income tax rate gets you universal healthcare, while in the US we're paying ~6,339.71 Euros a year to insure a family of four. But I think even accounting that, wages are much higher in the US.
logicallee 11y ago
Wages only rise if the demand curve doesn't drop with the higher price. In other words, just because something is scarce won't automatically drive its price up. Strawberries might be scarce in the winter, but that doesn't mean their price will be $10 or $20. It just means the volume at the normal price is negligible. Likewise, programmers are quite useful as they can automate things and so act as a lever on requirements. But that doesn't mean companies have $500K to pay to someone to do that. It just means the volume at the normal programmer salary is very low compared to the demand at that same salary.

by d4nt 11y ago

PythonicAlpha 11y ago

If the problem would be just employees "shopping around" that would not explain, why wages are not rising. If they would shop around, wages would also rise, even when they are only marginal interested in wages ... (show me 3 employees that are not interested in wages)

hodwik 11y ago
Tech wages are very inflated as is, expecting them to rise is pretty silly. When I was looking for my current job, I forgot to even ask about wages. So maybe what they gave me in pay is "flat" from five years ago, but it's still twice what any of my friends my age are making, while they have degrees and I do not.
- PythonicAlpha 11y ago
  I was only reacting on the argument was made by the OP, that is not logical in my opinion. I do not know about tech wages in the US. In Germany, the tech wages are not inflated, at least not in my opinion. The normal tech wages have risen maybe 3-5% per year the last few years in Germany (I don't call this inflated) and the years before it was even less. In the same time, the wages for top-managers have risen maybe 10-15% per year and are since decades incredible high above the wages of "tech wages" (the difference is climbing and climbing). I call that inflated. Your statement of course is more logical than that of the OP.
  - hodwik 11y ago
    Developer wages in the US average around €62k, about 20 higher than in Germany, while the US has roughly 30% lower cost of living. Also, in Germany you're at a 40% income tax rate at €43k, while in the US at €62k you're only taxed at 25%. Sure, that 40% income tax rate gets you universal healthcare, while in the US we're paying ~6,339.71 Euros a year to insure a family of four. But I think even accounting that, wages are much higher in the US.

logicallee 11y ago

Wages only rise if the demand curve doesn't drop with the higher price. In other words, just because something is scarce won't automatically drive its price up. Strawberries might be scarce in the winter, but that doesn't mean their price will be $10 or $20. It just means the volume at the normal price is negligible. Likewise, programmers are quite useful as they can automate things and so act as a lever on requirements. But that doesn't mean companies have $500K to pay to someone to do that. It just means the volume at the normal programmer salary is very low compared to the demand at that same salary.