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> Why are other companies more willing to give you a raise?

Because they don't know what you're currently earning, if you don't tell them.

This really has worked for me, but maybe things are different in Europe.

Definitely different here in Norway, as a persons income is made public and distributed to the press.

If you know any Norwegians, you can search them up on http://nrk.no/skattelister2008/, for instance.