Why compensation varies so much among countries?

Agoda.com qtOm46
Aug 30, 2018 12 Comments

Honest question: what is/are the reason(s) in your opinion why Google US pays much more than Google UK? Just an example of course.
Take Flipkart or Ola or any example where HQ is outside the US. A recent post mentioned top salary for Spotify was around USD 100k.
Naively I would expect that after taxes and cost of living every top company around the world would pay the same salary. But even inside the same company compensation net of tax vary widely.
Why?

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TOP 12 Comments
  • Expedia / Eng anony๐Ÿญ
    Market supply and demand. Period.
    Aug 30, 2018 0
  • Stitch Fix qaehm3m7
    I've given this a lot of thought, because in my field people with 4 years exp earn ~450 on Bay area, ~250 NYC, and presumably even less in London. I think it's roughly the following

    a) Assembling a new startup with VC funding and experienced staff in diverse areas of expertise is much easier in some places than others, particularly the bay area.
    b) There are huge advantages to in house rather than remote workers.
    c) Movement of labor is highly constrained.

    The result of (a) is that demand is highly concentrated, while (b,c) means that supply does not adjust to match demand.

    Side note: some people say (a) is entirely due to VC, but I think tech companies are odd beasts and there's just a critical mass of experienced tech managers in the bay area. In other metros you get a lot of companies run by ex consultants or operations experts who are not well adjusted to creating a climate of innovation, or engineers who are strong on tech but naive to the managerial challenges.
    Aug 30, 2018 1
    • Stitch Fix qaehm3m7
      TC is competitive with Netflix/FB/etcโ€ฆ depends what you do of course
      Aug 31, 2018
  • Microsoft / Product @zzz
    Dean and supply, simple as that. And the imbalance exists between countries because
    1. there no totally free movement of labor,
    2. it's hard to get people to move,
    3. hubs benefit from exchange of ideas, and partial lack of 1 and 2.

    You can extend the above to differences between cities or countries.
    Aug 30, 2018 0
  • Facebook public
    Cost of labor, that's it.
    Aug 30, 2018 0
  • Microsoft ThisSideUp
    Many factors. Most notably, country's economy, cost of living, investment on the field, competition and supply-demand for jobs on that field
    Aug 30, 2018 0
  • New zPWU11
    When me and my wife were making together around 90kEUR gross in Paris we felt we were rich. We were putting money on the saving account every month. Now only of living expenses in Bay Area we see around $12k a month leaving our checking account. And Paris is a very expensive place in Europe
    Aug 30, 2018 3
    • Agoda.com qtOm46
      OP
      Thank you
      This is very interesting

      How much were you saving in France per month? How much now? To me it boils down to that. Happy to hear different opinions.

      Do you both work in tech?
      Aug 30, 2018
    • New zPWU11
      We saved a little less than 100k in 5 years. She cannot do her job here, now it's only me bringing money home. I don't know how much we are saving now. Between tax returns, job changes, RSU, mortgage it's a fucking mystery... I don't even know if am in the red. Probably net worth goes up, by cash flow might be negative
      Aug 30, 2018
    • Agoda.com qtOm46
      OP
      Thank you
      You mean due to real estate?
      Yes I guess going from 2 salaries to 1 would have a significant impact and not only financially
      I am not quite sure how I would fill day after day after day 365 in a row
      Aug 30, 2018
  • Uber / Eng
    tROh00

    Uber Eng

    PRE
    Google
    tROh00more
    The same thing to other types of workers.
    It shocks me when American says "high paying manufacture jobs". Those aren't high paying at all worldwide.
    Aug 30, 2018 0
  • Agoda.com qtOm46
    OP
    Thank you all for interesting opinions

    So would you say (since both sell worldwide):

    (A) Spotify is better off than Netflix for being based in Sweden due to:
    - cheaper cost of talent due to limited labor movement

    (B) Netflix is better off for being in the US due to:
    - much bigger pool talent (better talent)

    (C) a different opinion

    I chose Spotify and Netflix as relatively comparable
    Aug 30, 2018 0