This makes complete sense – just another example of power law dynamics of the internet.
Short-term, we're going to see companies pursue a remote model in order to attract talent. This will be great for employees; live in Colorado, go on hikes and have a great lifestyle while commanding a SF salary!
Longer-term, companies are going to realize that (except for the top ~10% of performers, who will always command a high salary) having remote workers in the US is functionally equivalent to having remote workers in Mexico or Argentina. US workers are in for a rude awakening when they realize they're competing in a labor market with a more driven, lower cost-of-living population in the rest of the world.
Short-term, we're going to see companies pursue a remote model in order to attract talent. This will be great for employees; live in Colorado, go on hikes and have a great lifestyle while commanding a SF salary!
Longer-term, companies are going to realize that (except for the top ~10% of performers, who will always command a high salary) having remote workers in the US is functionally equivalent to having remote workers in Mexico or Argentina. US workers are in for a rude awakening when they realize they're competing in a labor market with a more driven, lower cost-of-living population in the rest of the world.
Shameless plug – I wrote a blog post about all of this back in December: https://paranoidenough.com/2020/12/07/Labor-Market-Arbitrage...