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At greater ages still, salaries started dropping, dependent on the level of education.After 50, the mean salary of engineers was lower—by 17% for those with bachelors degrees, and by 14% for those with masters degrees and Ph Ds—than the salary of those younger than 50.Curiously, Brown and Linden also found that salary increases for holders of postgraduate degrees were always lower than increases for those with bachelor’s degrees (in other words, even Ph D degrees didn’t provide long-term job protection).
For tech startups, it usually boils down to cost: most can’t even afford to pay K salaries, so they look for motivated, young software developers who will accept minimum wage in return for equity ownership and the opportunity to build their careers.
Companies like Zoho can afford to pay market salaries, but can’t find the experienced workers they need.
In 2006, Zoho’s CEO, Sridhar Vembu, initiated an experiment to hire 17-year-olds directly out of high school.
So whether we like it or not, it’s a tough industry.
I know that some techies will take offense at what I have to say, but here is my advice to those whose hair is beginning to grey: My advice to managers is to consider the value of the experience that the techies bring.