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A comment on Big Tech Company Salaries Are Hurting Startups. Parent comment

Re:Big Tech Company Salaries Are Hurting Startups by bradleyjg on Wednesday March 29, 2017 @12:28PM (#13987856)
Of course it means a lower salary.

There are some number of jobs out there and most of them don't want remote workers. Job applicants that are willing to take jobs that forbid remote work can also apply to those that permit remote work, while workers that will only look at jobs that allow remote work can only apply to the small subset that allow it.

It's straightforward micro-economic exercise to see that the when you hold all other things equal the market clearing rate for a particular employee is higher if he is willing to take on-site work than if he is not.

It'd be the same thing if an employee was only willing to work at companies whose names started with a-m.

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Re:Big Tech Company Salaries Are Hurting Startups by fulafel on Thursday March 30, 2017 @12:34AM (#13992923)
It works both ways. Even in this "perfect market" model, the remote salary will be higher if there is lower labour supply in the empolyer's local labour market than the global remote labour market.

I don't think there is more aversion to remote work on the employer side than on the employee side, so that effect should not turn the tables.

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Re:Big Tech Company Salaries Are Hurting Startups by st3v3r on Wednesday March 29, 2017 @04:07PM (#13990073)
"Of course it means a lower salary."

Why? How does the value of the work I provide change based on where I'm located? Is an if statement somehow different if done in the Bay Area vs the Midwest?

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Re:Big Tech Company Salaries Are Hurting Startups by tutufan on Wednesday March 29, 2017 @08:06PM (#13991787)
What does the value of your work have to do with your salary, though?
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Re:Big Tech Company Salaries Are Hurting Startups by kudokatz on Thursday March 30, 2017 @08:55AM (#13994908)
> What does the value of your work have to do with your salary, though?

Delivering more value can justify more compensation. But unless you're on contract for a percentage of the take, you don't necessarily get compensated based on output. Most software people get paid based on market rates which can be a lot lower than the actual value they deliver on the high-end--they're paid their "replacement cost" rather than per value added.

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