Why are salaries so low in the uk

Economist a44b. Economist a39c. Economist bef3. Economist 3c Not hate Uk AP here, but someone with a similar experience. Moved to U. Some of wage differential is just due to stickiness and will fade away over time. People wondering why wages are so low, often come from countries where curriculum takes longer and first real job is usually later in life.

First salaries also pay for life experience which in the uk is expected to not be very extensive. Economist 91e4. It is because the productivity is very low. Many admin people are doing unproductive things, with a Bacholer degree their human capital should be used in productive activities.

It's a general issue in this country. Economist Search the FT Search. World Show more World. US Show more US. Companies Show more Companies. Markets Show more Markets. Opinion Show more Opinion. Personal Finance Show more Personal Finance.

Aren't the high US salaries themselves extremely location-specific? It's not STEM supply pushing down the salaries. Japan has fewer per capita stem graduates than the US, with a highly developed technical economy, and dramatically lower engineer salaries than the US with a GDP per capita roughly the same as the UK. This makes me think the question is better phrased the other way around. Why is SV compensation so high compared with the rest of the world?

A virtuous circle of people who make a fortune investing in other people hoping to make a fortune in the hope of making their fortune bigger. Silicon Valley is the place where agglomeration economics kicked in for information technology. It had to be somewhere. Thanks, to me that is definitely the simple and obvious answer.

Huge tech industry profits, high demand for skilled programmers, limits on foreign workers who tend to drive wages down. Have you been to SV? Because outside of financial services, there aren't that many highly profitable companies, Google or Facebook profitability levels are not common in Europe.

Salaries have been rising though, and London salaries are twice or more than much of Europe. They aren't common in America either! I think there are lots of reasons, both sociological and economical, but my hunch is that demand for the most productive tech employees is lower since it's so easy to lean on American-produced innovations and services rather than build our own in the UK. Ditto for Oracle, Office , the Google Suite and even consumer stuff like Craigslist, Reddit or Apple's services that the UK never home produced something like Reddit continues to boggle my mind.

Why pay for the best people in the industry to work in the UK when we can just stand on the shoulders of work being done in the US? If you look at industries where the UK does take an innovative role like finance or bioinformatics, the salaries seem a lot more competitive, though are still not at US levels due to the UK's lower cost of living I guess. Balero on July 5, parent next [—]. The other equivalents are cheaper in the US.

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