bostonbubble.com

[balor123]

The Curse of the Class of 2009 - Lower Wages for Up to a Decade


I mentioned this problem in a previous post and the effect it would have on housing prices in a pipelined market like Boston.

[nickbp]

I'm surprised the income difference would last that long. If you're making under market rate, couldn't you just switch employers once conditions improve?

[nickbp]

Something I just thought of: They could go back to school and get a graduate degree while waiting out the storm.

[nickbp]

[balor123]

Having been in this position, switching employers can make a big difference but often not enough. They usually ask your previous pay. You don't have much leverage when their first offer is 25% higher than what you are currently making. There needs to be really strong demand for workers for you to demand good compensation and there hasn't been that demand for engineers at least since the late 90s. Outsourcing dampens employers willingness to accept non-ideal skillsets and graduating during tough times means that you have fewer opportunities to develop those well paying skillsets.