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by dasil003
5464 days ago
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This totally depends on the location. Within the US it seems somewhat tied to cost of living, but across the pond in Europe they pay significantly less even when rents are much higher (I'm looking at you London). Anywhere from $30,000 to $70,000 for someone fresh out of school might be normal. For 10 years experience the range could be $50,000 to $250,000. |
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It's similar to the fact that the price of manufactured goods don't vary linearly with the cost of producing them. They are related, in the sense that if the cost goes up, supply tends to go down and so the price goes up. But not always.
In Silicon Valley, Seattle area and NYC there's intense competition for qualified information-technology labour. So the price of labour (wages) goes up. They pay more not because the living cost there is high, but rather because they can afford to pay more and still turn a profit. In turn, lots of well-paid employees in an area tend to raise its living cost.
There are major European and Asian cities with living cost comparable to the above areas, but I don't know of any that pays IT salaries as high as SV/NYC. There are probably many reasons for that, but I guess one of them is that highly profitable software companies are very concentrated in the US. In Tokyo, for instance, the only companies that pay as well as US companies are foreign financial companies. These are just a handful. In average, salaries are much lower.