I’m going to guess that 80% of the US can’t get that.
802 karma · joined June 24, 2018
I’m going to guess that 80% of the US can’t get that.
(Am Brit)
The employer sets their wages only as high as necessary to attract, motivate and retain, and hires whoever provides the most value over that cost. Wages are not set based on value provided to the company, but by maximizing the spread between cost and value.
On the other side of the table, the employee wants to optimize the combination of their income (after-COL) and other aspects of the job they value which may include their location.
I just made this model up. Assuming it is reasonable, if living back home near the grandparents, likely with a lower COL, has a higher value to them than commuting in a tech hub, it is possible for the company to pay lower wages, and still be equally attractive to labor that is equally valuable. And given it is possible, they will do that.
Evidence : remote developers exist today and they are typically paid local market rate.
BTW when searching on Google it is quite obnoxious that it doesn't navigate to the actual URL but instead prefixes it with Google..
[2] https://www.google.com/amp/s/www.businessinsider.com/first-s...
[1] https://www.google.com/amp/s/www.theverge.com/platform/amp/2...