This implies, by the way, that one of the economic implications of an explosion of remote work adoption is that “old economy” firms employing engineers in e.g. Chicago or St. Louis are going to start finding themselves in shootouts with AppAmaGooBookSoft or startups.
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I mean sure, in a model of the world where the variable and mechanisms you've mentioned are the only ones, if you solve the equilibrium, then you'll get your result, but there are clearly other mechanisms in play, what will make them go away or become less important?
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Google is another example -- Google employees are good at applying pressure to enact corporate change (relative to other tech companies), why do they have such unequal pay across countries? Some other mechanism(s) must be more important than that today.
End of conversation
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I think that Amazon Canada is competing with Google MTV/NYC, FB in California, MS in Redmond, etc. They are paying enough that the “move to the States” calculus changes for Canadian engineers who are inclined to remain in Canada all else being equal-ish.
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also interesting to compare non-HQ offices. Google Zurich seems to pay the most in Europe, almost to California levels or so I've heard. How come London can't get close to Zurich?
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