--- created_at: '2015-06-13T13:28:07.000Z' title: 'Silicon Valley’s Dark Secret: It’s All About Age (2010)' url: http://techcrunch.com/2010/08/28/silicon-valley%E2%80%99s-dark-secret-it%E2%80%99s-all-about-age/ author: jrs235 points: 75 story_text: comment_text: num_comments: 118 story_id: story_title: story_url: parent_id: created_at_i: 1434202087 _tags: - story - author_jrs235 - story_9710936 objectID: '9710936' year: 2010 --- [Source](https://techcrunch.com/2010/08/28/silicon-valley’s-dark-secret-it’s-all-about-age/ "Permalink to Silicon Valley’s Dark Secret: It’s All About Age | TechCrunch") # Silicon Valley’s Dark Secret: It’s All About Age | TechCrunch [Menu][2] [ ![TechCrunch][3]][4] [Search][2] * Follow Us * [Facebook][5] * [Instagram][6] * [Twitter][7] * [Youtube][8] * [Flipboard][9] * [LinkedIn][10] * [Google+][11] * [RSS][12] * [More][2] * [Youtube][8] * [Flipboard][9] * [LinkedIn][10] * [Google+][11] * [RSS][12] [ Got a tip? 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Apply Now ][60] [Enterprise][61] * [ ![Google’s Cloud IoT Core is now generally available][62] ### [Google’s Cloud IoT Core is now generally available][63] * [ ![Bynder acquires digital asset management service Webdam from Shutterstock for $49.1M][64] ### [Bynder acquires digital asset management service Webdam from Shutterstock for $49.1M][65] * [ ![UJET, a startup that wants to speed up customer support, raises $25M led by GV][66] ### [UJET, a startup that wants to speed up customer support, raises $25M led by GV][67] * ### [Browse more...][61] [age][68] * [ ![Gamers getting older, fatter][69] ### [Gamers getting older, fatter][70] * ### [Browse more...][68] [zoho][71] * [ ![After Charlottesville, more web service providers ditch The Daily Stormer for TOS violations][72] ### [After Charlottesville, more web service providers ditch The Daily Stormer for TOS violations][73] * [ ![Startup spending guide: Where to spend money][74] ### [Startup spending guide: Where to spend money][75] * [ ![Zoho’s Latest Service Targets Subscription Economy][76] ### [Zoho’s Latest Service Targets Subscription Economy][77] * ### [Browse more...][71] [Microsoft][58] * [ ![Mixer, Microsoft’s Twitch competitor, adds game sales][78] ### [Mixer, Microsoft’s Twitch competitor, adds game sales][79] * [ ![Spotify job listing hints the company’s ‘first physical products’ are coming][80] ### [Spotify job listing hints the company’s ‘first physical products’ are coming][81] * [ ![Microsoft’s HoloLens is now available to rent][82] ### [Microsoft’s HoloLens is now available to rent][83] * ### [Browse more...][58] # Silicon Valley's Dark Secret: It's All About Age Posted Aug 28, 2010 by Vivek Wadhwa * ##### 0 SHARES * * * * * * * * * [ Next Story #### [The Online Video Debate: Size Versus Quality][84] ![][85] ![][86]An interesting paradox in the technology world is that there is both a shortage and a surplus of engineers in the United States. Talk to those working at any Silicon Valley company, and they will tell you how hard it is to find qualified talent. But listen to the heart-wrenching stories of unemployed engineers, and you will realize that there are tens of thousands who can't get jobs. What gives? The harsh reality is that in the tech world, companies prefer to hire young, inexperienced, engineers. And engineering is an "up or out" profession: you either move up the ladder or face unemployment. This is not something that tech executives publicly admit, because they fear being sued for age discrimination, but everyone knows that this is the way things are. Why would any company hire a computer programmer with the wrong skills for a salary of $150,000, when it can hire a fresh graduate—with no skills—for around $60,000?  Even if it spends a month training the younger worker, the company is still far ahead. The young understand new technologies better than the old do, and are like a clean slate: they will rapidly learn the latest coding methods and techniques, and they don't carry any "technology baggage".  As well, the older worker likely has a family and needs to leave by 6 pm, whereas the young can pull all-nighters. At least, that's how the thinking goes in the tech industry. ![][87] (The lines represent the 10th, 50th and 90th percentiles of the sample) In their book [_Chips and Change][88]_, Professors Clair Brown and Greg Linden, of the University of California, Berkeley, [analyzed][88] Bureau of Labor Statistics and census data for the semiconductor industry and found that salaries increased dramatically for engineers during their 30s but that these increases slowed after the age of 40. 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 PhDs—than the salary of those younger than 50. Curiously, Brown and Linden also found that salary increases for holders of postgraduate![][89] degrees were always lower than increases for those with bachelor's degrees (in other words, even PhD degrees didn't provide long-term job protection). It's not much different in the software/internet industry. If anything, things in these fast-moving industries are much worse for older workers. For tech startups, it usually boils down to cost: most can't even afford to pay $60K 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][90] to hire 17-year-olds directly out of high school. He found that within two years, the work performance of these recruits was indistinguishable from that of their college-educated peers. Some ended up becoming superstar software developers.** ** Companies such as Microsoft say that they try to maintain a balance but that it isn't easy. An old friend, David Vaskevitch, who was Senior Vice-President and Chief Technical Officer at Microsoft, told me in 2008 that he believes that younger workers have more energy and are sometimes more creative. But there is a lot they don't know and can't know until they gain experience. So Microsoft aggressively recruits for fresh talent on university campuses and for highly experienced engineers from within the industry, one not at the expense of the other. David acknowledged that the vast majority of new Microsoft employees are young, but said that this is so because older workers tend to go into more senior jobs and there are fewer of those positions to begin with. It was all about hiring the best and brightest, he said; age and nationality are not important. 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: 1. Move up the ladder into management, architecture, or design; switch to sales or product management; or jump ship and become an entrepreneur ([old guys have a huge advantage][91] in the startup world). Build skills that are more valuable to your company, and take positions that can't be filled by entry-level workers. 2. If you're going to stay in programming, realize that the deck is stacked against you. Even though you may be highly experienced and wise, employers aren't willing or able to pay an experienced worker twice or thrice what an entry-level worker earns. Save as much as you can when you're in your 30s and 40s and be prepared to earn less as you gain experience. 3. Keep your skills current. This means keeping up-to-date with the latest trends in computing, programming techniques, and languages, and adapting to change. To be writing code for a living when you're 50, you will need to be a rock-star developer and be able to out-code the new kids on the block. My advice to managers is to consider the value of the experience that the techies bring. With age frequently come wisdom and abilities to follow direction, mentor, and lead. Older workers also tend to be more pragmatic and loyal, and to know the importance of being team players. And ego and arrogance usually fade with age. During my tech days, I hired several programmers who were over 50. They were the steadiest performers and stayed with me through the most difficult times. Finally, I don't know of any university, including the ones I teach at, that tells its engineering students what to expect in the long term or how to manage their technical careers. Perhaps it is time to let students know what lies ahead. _**Editor's note:** Guest writer [Vivek Wadhwa ![][92]][93] is an entrepreneur turned academic. He is a Visiting Scholar at the School of Information at UC-Berkeley, Senior Research Associate at Harvard Law School and Director of Research at the Center for Entrepreneurship and Research Commercialization at Duke University. You can follow him on Twitter at [@vwadhwa![][92]][94]and find his research at [www.wadhwa.com![][92]][95]._ * ##### 0 SHARES * * * * * * * * [ Advertisement ][96] [ Advertisement ][96] ## Newsletter Subscriptions **The Daily Crunch** Get the top tech stories of the day delivered to your inbox **TC Weekly Roundup** Get a weekly recap of the biggest tech stories **Crunchbase Daily** The latest startup funding announcements Enter Address Subscribe [SEE ALL NEWSLETTERS][97] » ## Latest Crunch Report * [ ![The Last Episode Of | Crunch Report][98] ### [The Last Episode Of | Crunch Report][99] [Watch More Episodes__][100] * [ Enterprise ][61] * [ age ][68] * [ zoho ][71] * [ Microsoft ][58] * Popular Posts ## Featured Stories * [ ![Google publicly launches ARCore 1.0 on 13 phones, will begin expanding Lens preview][101] #### Google publicly launches ARCore 1.0 on 13 phones, will begin expanding Lens preview 20 minutes ago | Lucas Matney ][102] * [ ![1Password bolts on a ‘pwned password’ check][101] #### 1Password bolts on a ‘pwned password’ check 3 hours ago | Natasha Lomas ][103] * [ ![Snap CEO Evan Spiegel got a $637 million bonus last year][101] #### Snap CEO Evan Spiegel got a $637 million bonus last year 18 hours ago | Katie Roof ][104] * [ ![Visualizing the slave insurance industry][101] #### Visualizing the slave insurance industry 19 hours ago | Megan Rose Dickey ][105] ## Latest From Enterprise * [ ![Customer service bot startup Agent IQ announces $6.3 million Series A led by Sierra Ventures][101] #### Customer service bot startup Agent IQ announces $6.3 million Series A led by Sierra Ventures 23 hours ago | Ron Miller ][106] * [ ![Indigo Fair raises $12M to connect wholesalers with smaller retail outlets with a smarter service][101] #### Indigo Fair raises $12M to connect wholesalers with smaller retail outlets with a smarter service yesterday | Matthew Lynley ][107] * [ ![Feature Labs launches out of MIT to accelerate the development of machine learning algorithms][101] #### Feature Labs launches out of MIT to accelerate the development of machine learning algorithms yesterday | Ron Miller ][108] * [ ![Teampay raises $4m so you don't have to steal your CEO's credit card anymore][101] #### Teampay raises $4m so you don't have to steal your CEO's credit card anymore yesterday | Danny Crichton ][109] [blog comments powered by Disqus][110] Up Next ### [The Online Video Debate: Size Versus Quality][84] Posted Aug 28, 2010 ### CrunchBoard #### Job Listings * [ ### Field Services Engineer at Haivision Network Video (New York, NY, USA) ][111] * [ ### Equipment Service Analyst (Contract) at DWFritz (Wilsonville, OR, United States) ][112] * [ ### Senior Server Engineer at ProsperWorks (San Francisco, CA, USA) ][113] * [ ### Principal Software Engineer (Backend) at CBRE (Seattle, WA, USA) ][114] * [ ### Senior Site Reliability Engineer (DevOps) at CBRE (Seattle, WA, USA) ][115] [More from CrunchBoard][116] [ Advertisement ][96] #### [TechCrunch][14] #### ![][117] * [News][14] * [Video][28] * [Events][41] * [Crunchbase][118] * [TechCrunch Store][119] #### About * [Staff][120] * [Contact Us][121] * [Advertise With Us][122] * [Event & Editorial Calendar][123] * [Send Us A Tip][13] * [Activations Blog][124] #### International * [China][125] * [Europe][20] * [Japan][126] ### Follow TechCrunch * [Facebook][5] * [Twitter][7] * [Google+][11] * [LinkedIn][10] * [Youtube][8] * [Pinterest][127] * [Tumblr][128] * [Instagram][129] * [StumbleUpon][130] * [Feed][12] ### TechCrunch Apps * [iOS][131] * [Android][132] * [Windows 8][133] ### Subscribe to The Daily Crunch Latest headlines delivered to you daily Subscribe to Subscribe to The Daily Crunch Enter Email Address Subscribe © 2013-2018 Oath Tech Network. 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