Business, 30.11.2019 00:31 zachzach28280
According to salary. com, the average salary for a software engineer level iii (a higher-level position in software design and implementation) in the silicon valley area of california is $108, 244. however, google pays its level iii software engineers an average salary of $124, 258. why does google pay a salary higher than the equilibrium salary for equivalent positions in the same area?
a. google does not know what other firms in the same area are paying and unknowingly set its wages far above the equilibrium salary.
b. since google is such a large firm and produces a product used by so many people, the government mandates an efficiency wage that google must pay its engineers.
c. google is paying an efficiency wage in order to minimize worker turn over, increase worker productivity, and attract the top talent.
d. google is the only firm in the silicon valley area whose workers are not in a union; thus it is able to pay its workers more than other firms that have unionized workers.
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