That doesn't explain the astronomical wages for tech workers at all. Tech workers are paid highly because their employers are generating huge revenues per employee and the cost of living in these coastal hubs is exceptional [even before the most recent tech boom]. Tech workers not in Seattle, Bay Area, LA/Irvine, Boston, NYC and DC/NoVA are not getting paid nearly the same as tech workers in those places. Even in Chicago, Miami, Houston, Austin, Denver, Boulder, Raleigh, Charlotte, Philly -- they're all 20% or more lower comp. And what I'm not sure most folks on the outside looking in realize is just how much better tech companies pay for tech roles than non-tech companies pay for the same roles (usually in "IT" organizations). A SWE with 5yr experience at Google might be making $325k/yr total comp, but a SWE with 5yr experience at a F500 manufacturing company might be making $100k (and possibly working on harder problems).