Saturday, March 03, 2018

Big Tech compensation in 2018



I don't work in Big Tech so I don't know whether his numbers are realistic. If they are realistic, then I'd say careers in Big Tech (for someone with the ability to do high level software work) dominate all the other (risk-adjusted) options right now. This includes finance, startups, etc.

No wonder the cost of living in the bay area is starting to rival Manhattan!

Anyone care to comment?

Meanwhile, in the low-skill part of the economy:
The Economics of Ride-Hailing: Driver Revenue, Expenses and Taxes

MIT Center for Energy and Environmental Policy Research

We perform a detailed analysis of Uber and Lyft ride-hailing driver economics by pairing results from a survey of over 1100 drivers with detailed vehicle cost information. Results show that per hour worked, median profit from driving is $3.37/hour before taxes, and 74% of drivers earn less than the minimum wage in their state. 30% of drivers are actually losing money once vehicle expenses are included. On a per-mile basis, median gross driver revenue is $0.59/mile but vehicle operating expenses reduce real driver profit to a median of $0.29/mile. For tax purposes the $0.54/mile standard mileage deduction in 2016 means that nearly half of drivers can declare a loss on their taxes. If drivers are fully able to capitalize on these losses for tax purposes, 73.5% of an estimated U.S. market $4.8B in annual ride-hailing driver profit is untaxed.
Note Uber disputes this result and claims the low hourly result is due in part to the researchers misinterpreting one of the survey questions. Uber's analysis puts the hourly compensation at ~$15.

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