[jrmurad]

Everyone throwing around "free" healthcare as a valid explanation for this wage gap needs to account for taxation levels too.

using estimates via Google:

"average programmer salary usa" -> $84,360

"average programmer salary in sweden" -> $54,264

According to http://www.economist.com/blogs/graphicdetail/2012/10/focus-4, average effective taxes in the USA (including social security) are 25%... but 35% in Sweden. Even if those particular numbers are off, the point is that higher taxes may further expand the gap with lower pre-tax foreign salaries.

So the Swede keeps $35k and gets state-sponsored healthcare. The American keeps $63k and probably has decent health coverage from his employer. I'm not sure about this but I suspect that the American can use a fraction of that $28,000 difference to upgrade the health insurance to Swedish levels or better.

(There are also smaller but still significant expenses like housing, affected by property taxes, and consumption taxes like New York City's 8.875% relatively-high-for-the-USA sales tax vs Sweden's 25% VAT.)

[bjourne]

Your number for Sweden is (sadly :)) incorrect. This site (http://www.lonestatistik.se/loner.asp/yrke/Systemutvecklare-...) puts the median at 396,000 kr -> $44,800. But unless the site adjusts for salary increases, the estimate is probably on the lower side.

Salary also depends on your title. So web developers earn less than system developers who in turn earn less than system architects even though they may all do essentially the same work.

[dx034]

Healthcare is not just having an insurance. It's about keeping your job/pay when your sick for a longer time, maternity/paternity leave, pensions (also if you have to quit the work force early because you can't perform your job anymore), etc.

[ted_dunning]

The averages don't work well when you divide. You need to look to medians for the income and then compute average tax rate forthat* income.

[jrmurad]

That's true. I didn't look into how exactly Swedish rates are computed. A 25% effective rate sounded about right to me for a single-filer US salary in that range in most states which have income taxes on top of the federal+FICA. A Nordic country having 10+% higher effective rates likewise seemed reasonable but I certainly don't know for sure.