Many people in my country, and NW Europe in general, opt for pay in another currency: time.
Dutch people work _on average_ 350 hours less per year than their US counterparts; or about 7 weeks worth when working 40 hours a week.
It's not unheard of in my company to have between 30 and 50 paid days off per year on top of the national holidays. These days are negotiated during salary discussions and a trade off between pay and time.
https://data.oecd.org/emp/hours-worked.htm
Germany, Denmark, Norway, Switzerland, Sweden etc... We all basically opt for more time off than more pay.
And this is possible in part due to the high taxes; we have no medical bills, no education bills, pension is taken care of, etc..
I for one, would gladly opt for a 4 day work week with 60k pay a year in stead of a 5 day workweek with 90k pay.
Granted, that doesn't continue after you stop working for them, but we do have federal government provided money and medical coverage after retirement age. I think people have a caricature of what the US system is because as Americans we have a culture of complaining about our government, which I usually wholeheartedly participate in :)
The bottom line is, in my opinion, if you like your particular culture, you will be happier where you are because it won't be replicated quite the same anywhere else. But the overall standard of living for software engineers in the United States is extremely high. Even when people are complaining about housing prices, they aren't much higher than in Europe, and you get a really nice living space for it that is usually much larger with nicer amenities. And in many places in the US, including where I live, the prices are cheaper and I get a nice big house with land and a beautiful view.
Software Engineers definitely get paid more in the US than in the EU. But some of the difference can be explained by it. Although I don't think software engineers in either country have much to complain about.
That being said, these perks that I listed go for everyone in the country, not just the top % of all working people. In one form or another this is paid for by people who can, like software engineers.
p.s. 4 weeks is the legal minimum amount of vacation days here. Most people have double that.
Nevertheless 350/40 = 8.75, but it is still far from covering the wage disparity.
I for one, would gladly report an extra hour each day for a 50-500% boost in my salary.
The more vacation / paid days off per year definitely doesn't cover the (entire) wage disparity. But it helps. I don't know many Americans that get every 2nd Friday off (36hours workweek) while it is commonplace in NL, as well as simply taking August off by default.
I'm not saying salaries in the US aren't higher. They are! But I just hope my explanation covers some of the "mind boggling" part of how European salaries are lower.
The only justification for this policy is something called "cost of labor" — in other words: "We've agreed with other tech companies that nobody's going to raise salaries locally."
This can be done, people are doing it.
https://elsajohansson.wordpress.com/2017/09/13/what-does-a-w...
https://m.signalvnoise.com/how-we-pay-people-at-basecamp-f1d...