The Silicon Valley Wage Premium

Software application developers earn large salaries in the United States, $96,260 a year on average. But in metropolitan San Jose they earn $131,270, the highest in the country. There are many partial explanations for this-local cost of living, differences in education levels, experience, and industry-but none of them quite account for it. It turns out that developers living in San Jose have acquired the specific skills most valued by employers.

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