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nathan_long | 5 years ago

So you're considering Candidate A, who lives in SF, and B, who lives in a small town.

You decide that B has to compete with A on talent, but A doesn't have to compete with B on price.

Does that make strategic sense?

discuss

order

SpicyLemonZest|5 years ago

Yes. Stripe and Gitlab follow that model for their remote workforce.

lultimouomo|5 years ago

If you want to hire A, you have to compete with local SF company that pay high wages.

If you want to hire B, you have to compete with local small town companies which pay low wages, plus a very small number of remote companies which are in the same position as you from a game-theoretical perspective.

I think it's obvious that in the long term, if remote work becomes widespread, wages (and thus cost of living) will level out, but in the short term if few enough companies do it they can beat the prisoner's dilemma and keep remote wages lower than the ones in Silicon Valley.

vinniejames|5 years ago

Candidate A probably wouldn't live in SF if he didn't have to