Not everyone struggles, but if you're in an expensive region and your employees have roommates and spend the majority of their income on living costs, you're already not paying them enough.
As an economist, I'll note that it's trivially easy to explain why employers would pay women less than men, or black less than white, etc.
What we *cannot* explain is why any idiot would pay men more than women, or whites more than blacks.
And here, the question is why any sane employer would pay an employee Silicon Valley wages when he could hire someone in a rural area for a lower salary that let the employee live like a prince there . . .
Unless there is something about being present in Silicon Valley that makes the same employee more valuable than if he were in a rural hole in the wall, it's tough to justify spending on SV hiring . . . with the corollary that if that employee leaves SV to do the same job, that employee necessarily becomes less valuable.
Compensation is already too low (Score:4, Insightful)
looking at it all backwards (Score:3, Insightful)
Everyone is looking at this *backwards* . . .
As an economist, I'll note that it's trivially easy to explain why employers would pay women less than men, or black less than white, etc.
What we *cannot* explain is why any idiot would pay men more than women, or whites more than blacks.
And here, the question is why any sane employer would pay an employee Silicon Valley wages when he could hire someone in a rural area for a lower salary that let the employee live like a prince there . . .
Unless there is something about being present in Silicon Valley that makes the same employee more valuable than if he were in a rural hole in the wall, it's tough to justify spending on SV hiring . . . with the corollary that if that employee leaves SV to do the same job, that employee necessarily becomes less valuable.
doc hawk
Re: (Score:2)