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by HamSession 4222 days ago
People are not worried about individuals of equal skill taking their jobs, but those of lesser skills.

Example. Individual A : Master's of CS from Stanford, Passed interviews, Java, SQL, Hadoop, JSF - Requested salary - 115k

Individual B : PhD Student at Stanford, Passed interviews, Java, SQL - Requested salary - 95k

Job requirements: Java, SQL, Hadoop, JSF

What would you decide on as the hiring manager, you have a limited amount of funds per year and need to meet a deadline. You know A is more qualified, but B is 20k cheaper. As a manger if time permits you will select B since he is cheaper and can acquire the skills needed in his spare time from his fellow engineers or from online materials. In making this decision B has the advantage due to price manipulation, and you allowing him to work even though he in under qualified.

Some might say this scenario is unrealistic but both candidates are using their salary to improve their lives, it just so happens B takes a lot less money (due to being born in a poorer country) to improve his life then A. Typically what you will see in the valley is B living in an apartment with 4 or 5 other people for 3 to 4 years periodically sending his money to his mother country. He can then start a company easily in that new country with his capital, meanwhile A plans to raise a family locally.

Much of this is happening right now http://www.nbcbayarea.com/investigations/Silicon-Valleys-Bod... Google, Facebook, Linkedin, Everyone does this in the valley.

1 comments

A PhD student at Stanford wanting only $95K?!? I would be extremely suspicious; is B going to be happy with the job and not leave within a year?

In this market, at least, I don't think these choices are very common.

"This market" won't be "this market" after this new plan is place.
Why? At the high-end, it is already an international market for talent. Where visas are hard to come by, the choice is not often to increase salaries to hire more Americans, but where should we open that new office: Berlin, Bangalore, Singapore, or Beijing? Couple that with a horrible American tax policy that makes repatriating income earned abroad expensive, and doing R&D outside of the US is quite appealing (not only can you find more talent, but you don't have to bring money back to the US to pay for that talent).