Reasons for the salary gap between EU and the US?
What are reasons that the salary in EU is too lower than the US? I am talking about the top tech companies, especially faang. I know that there are many reasons such as different rent fee, tax, welfare, etc. In Amsterdam, I received an offer from Amazon as a senior role, but the TC was very low. When I researched TC range between Amsterdam and the US, I realized the TC of the US is about 2x. Now the TC in the US for tech area seems to be increasing fast. I understand it should be depend on supply and demand theory. Okay, what's the benefit living in EU? I know that Amazon should be hard work place with pip culture. I imagine many engineers in Amazon EU also have to work hard and they have to spend more time to do overworking after official work time. I am sorry I don't know much about living in EU and the US. I just live in one of the Asian countries. I am just curious why many excellent engineers are working in EU. P.S. I am so sorry if you are uncomfortable.
All that “free” healthcare in Europe isn’t actually free. EU has way higher taxes and regulations
EU citizens on average pay less than their American counterparts in healthcare taxes. However having "free" universal healthcare means you don't have to save 300k in case you fall ill and lose your job.
Hospitals don’t turn people away who need care. In fact one huge problem in California is that illegal immigrants use the emergency room like a general practice doctor for mild issues. Tons of people don’t pay anything and the majority of people on employee sponsored care enjoy their plans.
In the EU you have a much stronger support network and -varies by country- many services covered by taxes. These are reasons why people tend to accept lower salaries in the EU compared to the US. Obviously I understand when you mean US you mean HCOL like San Francisco or Seattle and not Bumfuck, Alabama. There are also cities in the EU with better salaries than Amsterdam, but not 2X
1. TC ? or GTFO
Look at the work output in EU. I interact with EU teams quiet a bit and seems like you guys work less then US Amazon employees sleep!
I can say same about US teams I interact with
The EU is a much smaller economy overall. Individual countries have far smaller economies. California has a larger economy than all the European countries, except Germany.
Socialism
Its the employer taxes
Part of it is I don't think companies can ride you in the EU like they can here. We have shit vacation, paternity leave, maternity leave, etc etc All those nice perks you guys get comes out of the TC. Something for something I guess.
Also here they can have you work over 8 hours a day indefinitely and fire you if you don't. Can they do that in the EU?
Many excellent engineers work in the EU because they were born in the EU and have family/friends in the EU. Not everybody is willing to uproot their whole life for a job. Now, if you are not from the EU and you have to choose between a job in the EU and a job in the US, the monetary benefits of the US make it more attractive. However, some people would still choose the EU for the WLB and faster immigration procedures.
Thanks for writing the only sensible answer here.
they pay the least they can anywhere.. that's the simplest explanation